Discussion Paper - Financeability test in price regulation - September 2012

This paper provides our stakeholders an opportunity to engage with us on proposed modifications to the financeability test. In many of our price reviews we conduct a financeability test to assess the implications of our determinations for the financial sustainability of a utility. The financeability test allows us to identify instances where there may be financial sustainability issues. This discussion paper presents our preferences in regards to which financial ratios we will use in our financeability test and the possible adjustment we may make.