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.
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.
