Investor Presentaiton

REGULATORY ENVIRONMENT DEVELOPMENTS Better Regulation Process The regulatory framework has been under review during 2012 and 2013: ► Numerous independent inquiries and reviews - e.g. Productivity Commission ► National Electricity & Gas Objectives and Regulatory Framework - Australia Energy Markets Commission (AEMC) ▸ Australian Energy Regulator (AER) Better Regulation process - new Guidelines and increased consumer involvement The AER has stated the following key principles as the foundation of its Better Regulation program 1: ► The need to encourage necessary and efficient investment ► Where possible, economic regulation should be incentive based ► Guidelines should be the product of extensive consultation and engagement Industry position: ▸ Investors want certainty - Following completion of the current reviews it is important that the system be bedded down and allowed to operate for the long term without further change ▸ The rate of return must reflect the real world - all market evidence suggests that required equity returns do not move in tandem with bond returns ►Incentives must be effective for all businesses the best performers must continue to be incentivised to improve further, or at least to maintain their standards, and should be rewarded accordingly. This principle must form the basis for the use of benchmarking and the setting of incentives 1. Mr Andrew Reeves, AER Chairman - Energy Networks Association regulation seminar, 24 July 2013 SPARK INFRASTRUCTURE INVESTOR PRESENTATION - NOVEMBER 2013 10 spark infrastructure

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