In its pricing determinations, IPART uses a real rate of return to determine the cost of capital allowance of its building blocks model. This cost of capital allowance forms a substantial part of the annual revenue requirement of utilities. IPART is currently reviewing how it adjusts for expected inflation in deriving the cost of capital. This discussion paper considers a new methodology that can be used to adjust the cost of capital for inflation using the Australian zero coupon inflation-indexed bond market.
Submissions received for Discussion Paper - Adjusting for expected inflation in deriving the cost of capital - February 2009
|13 Apr 2009||Australian Rail Track Corporation Ltd||Simon Ormsby|
|19 Apr 2009||NSW Treasury||S Brady|
|8 Apr 2009||Sydney Water||Alan Ramsey|
* Part of submission not published due to confidentiality and/or other legal reasons
** Submission not published due to confidentiality and/or other legal reasons