PIAC lodged a submission to the Independent Pricing and Regulatory Tribunal (IPART) on its consultation on how it should estimate equity beta for the Weighted Average Cost of Capital (WACC).
The determination of WACC has a significant impact on the prices for essential water services and the long-term financial incentives regulated businesses face. This highlights the importance of establishing and using a transparent and defensible methodology.
PIAC supports the intent of IPART’s draft decision in maintaining the stability, certainty, replicability and predictability of its WACC method, as well as ensuring it produces reasonably accurate estimate.
