Special Reviews

WACC Methodology 2017

In progress
Start Date
Jul 2017
Release Final Report
Mar 2018

IPART is reviewing the standard method we use to decide the weighted average cost of capital (WACC). The WACC is a key input for calculating the allowance for a return on assets, which is part of the building block approach we use to determine the revenue requirement of businesses we regulate.


We updated our WACC method in 2013. In our view, the current method is working well. However, it is timely to consider whether we can make incremental improvements to better reflect efficient financing costs where it is feasible and there are material benefits from doing so.


We are seeking stakeholder feedback on our draft decisions on how we measure and estimate the parameters we use to calculate the WACC. We have released a Draft Report and invite stakeholders to make a written submission in response to it by 1 December 2017

What next

We will consider all submissions to our Draft Report, and will undertake further analysis before publishing a Final Report in early 2018.

Key Contact
Mike Smart
02 9113 7728
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