The National Gas Law requires the ERA to produce a gas rate of return instrument. The gas instrument sets out the methods the ERA will use to estimate the allowed rate of return and value of imputation credits for gas transmission and distribution service providers. These regulated gas pipelines are the Dampier to Bunbury Natural Gas Pipeline, the Goldfields Gas Pipeline and the Mid-West and South-West Gas Distribution Systems.
The ERA will review the current gas instrument and replace it with the 2022 Gas Instrument. This provides an opportunity to undertake a comprehensive review of approaches for determining the allowed rate of return on capital.
As part of the consultation process for the 2022 gas instrument review, the ERA will use an Independent Panel to review its draft gas instrument. The Independent Panel will review the draft gas rate of return instrument to ensure that the ERA’s approach is supported by sound reasoning and is capable of achieving the national gas objective.
As soon as practicable after the ERA publishes the draft instrument the Independent Panel will give the ERA a written report about the instrument.
The members of the Independent Panel are:
Mr. Michael Cosgrave (Chair)
Mr Cosgrave has over 25 years’ experience in economic regulation at a senior level across the transport, energy, resources and communications sectors, principally with the Australian Competition and Consumer Commission. Mr Cosgrave was Chief Infrastructure Adviser at the ACCC and sat on the ACCC’s Infrastructure Committee, Communications Committee, Electricity Project Board, Gas Project Board and Digital Platforms Committee. Previously Mr Cosgrave was Executive General Manager, Infrastructure Regulation Division at the ACCC.
Dr. Dane Etheridge
Dr Etheridge was employed by Curtin University in the School of Accounting, Economics and Finance. Mr Etheridge has worked in private consulting roles performing analysis related to the minerals, resources, and infrastructure sectors.
Dr. Lee Smales
Dr Smales is an associate professor at the University of Western Australia (UWA) where his role includes research and teaching masters level courses in finance. His research interests are financial markets, behavioural finance, futures markets, investor sentiment and monetary policy. Previously Dr Smales worked in financial markets as a derivatives and foreign exchange trader.
Independent Panel Report
The ERA has published the Independent Panel’s Report on the ERA’s 2022 Draft Gas Rate of Return Instrument.
