IPART review of WACC methodology

Subtitle:
Submission to draft report
Publication date:
1 December 2017
Resource type:
Submission

PIAC lodged a submission to IPART draft report in its review of Weighted Average Cost of Capital (WACC). PIAC supports IPART’s routine review of its WACC methodology to ensure that it remains fit for purpose. PIAC considers that the stability and consistency of the WACC are generally positive outcomes for consumers, yet stressed the importance of keeping WACC no higher than necessary, particularly to support affordability and allow households to effectively budget for the essential service of water.

PIAC supported IPART’s inclusion of a principle for the review reflecting that consumer impacts must remain central to any regulatory decisions. PIAC also made comment on IPART’s proposed changes to its cost of debt, data sampling, estimation of risk and inflation.

Share this article

Wins

Towards Truth is a partnership between PIAC and UNSW Indigenous Law Centre.
Former disability discrimination commissioner Graeme Innes settled a dispute over a 'humiliating and distressing' experience.
We secured a settlement for our client Yasir* who alleges he was forced to wear handcuffs to access healthcare.

Keep up to date with our work

Subscribe for updates including media coverage, event invitations and progress stories. You will hear from us about twice a month.