IPART has released its final report and decisions on the rate of return and remaining mine life from 1 July 2009. Under the NSW rail access undertaking, IPART is to review the rate of return and remaining mine life every five years.
For this determination, the Tribunal has conducted an extensive public consultative process, reviewed all written submissions and held public hearings.
The Tribunal has decided that Sydney Water’s overall revenue should increase in line with movements in the consumer price index (CPI) in each year of the determination period.
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.