Submission: ICRC Issues Paper: Review of Methodologies for the Weighted Average Cost of Capital

22 October 2020

ACTCOSS made a submission to the Independent Competition and Regulatory Commission’s (ICRC) issues paper as it reviews how it calculates the weighted average cost of capital (WACC) for water and sewerage services in the ACT. The review aims to ensure Icon Water receives an appropriate return on prudent and efficient investments in infrastructure used for delivering its services.

Our submission supports the overall approach the ICRC has proposed to adopt for its review of the WACC methodology. It stresses the importance of keeping the WACC no higher than necessary so that this essential service is affordable, especially for low-income households.

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2020 submission ICRC WACC methodology review issues paper (pdf)
2020 submission ICRC WACC methodology review issues paper (docx)
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