WACC Parameters Rule change - economic analysis
Financial Year: 2006/07Propose to the AEMC a change to Chapter 6 of the NER that will challenge the current level of two key parameters used in setting the Weighted Average Cost of capital (WACC) i.e. effectively the profit margin for distributors. The parameters are the Equity Beta which is set at 1.0 and Market Risk Premium of 6.0%. The EUAA argues that these levels are too high and therefore end-users of electricity are paying too much for distribution charges.
| Grant Details | Grant Content |
|---|---|
| Grant Reference Number: | 243 |
| Applicant: | Energy Users Association of Australia |
| Grant Amount: | $34,000 |
| Approval Status: | Yes |
| Financial Year: | 2006/07 |
| Grant Type: | Electricity Advocacy |
| Energy Type: | Electricity |
| Jurisdiction: | National,WA |
| Consumer Class: | Large Business |
Contact
| RELATED RESOURCES | DOWNLOAD/LINK |
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| Submission to AER on Real Risk Free Rate: SP Ausnet and ElectraNet Revenue Resets |
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| Review of Parameters in the NER |
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