SFG Consulting has been engaged to advise the Independent Pricing and Regulatory Tribunal (“IPART” or “the Tribunal”) on the retail margin to be factored into regulated electricity tariffs for the period 1 July 2013 to 30 June 2016. In this paper we outline our proposed estimation method. There are three estimation techniques, described briefly below. Our goal is to use these three different approaches to triangulate around an economically reasonable retail margin. To the extent that the results of the three approaches corroborate one another, decision-makers and industry can have more confidence in the outcomes.
Stay up to date. Subscribe to receive all major news and updates.