Weighted Average Cost of Capital

Each year the Railways Access Code requires the ERA to determine the Weighted Average Cost of Capital to be applied in the determination of floor and ceiling cost prices for the regulated rail networks.

Every five years the ERA consults on the Determination. Information on these reviews is available below.

Current rail WACC methodology

The ERA’s current rail WACC methodology can be found in the 2023 Rail WACC Final Determination.

Annual Updates and Determinations

The ERA’s annual updates and determinations can be found below:

Reviews of the WACC methodology

The method for determining the WACC was reviewed in 2003 and is required to be reviewed continually every 5 years. Information on these reviews is available below.

• 2023 WACC Methodology review
• 2018 WACC Methodology review
• 2013 WACC Methodology review
• 2007 WACC Methodology review
• 2003 WACC Methodology review

Other reviews

On 1 July 2008, TPI’s Railway was included in WA's rail access regime. From this date as at 30 June each year the ERA is required to make an annual WACC determination to be applied in determining the floor and ceiling costs for the railway. As TPI’s railway was new when included in the access code on 1 July 2008, the ERA undertook a public consultation process to determine its WACC.

TPI represented a whole new set of parameters and approach and having established a framework, this framework was then applied to Roy Hill Infrastructure's railway in 2017.

• 2009 Initial Weighted Average Cost of Capital Determination for The Pilbara Infrastructure's Railway