Investor Presentaiton
2016-20
Citi Power
Allowance (1)
2021-26
CP Draft
Decision (1)
CP Revised
Proposal (1) Allowance (2)
2021-26
PC Draft
Decision (2)
2021-26
PC Revised
Proposal (2)
Capex
$854m
$570m
$635m $2,060m
$1,586m
$1,849m
($2021)
INFRASTRUCTURE FOR THE FUTURE
VPN 2021-26 REGULATORY PROPOSAL
Final Risk-free Rate and the estimate of inflation is to be updated for the final decision in April 2021
Regulatory
proposal
metric
2021-26
2016-20
Powercor
VPN's revenue profiles submitted in their Revised Proposals
closely align with the AER's Draft Determination
Standard Control Services Revenue ($m)(1)(2)(5) and RAB ($bn) (4)
Opex
$800
$473m
$463m
$472m $1,317m
$1,321m
$1,388m
($2021)
$600
WACC
6.11%
4.59%
4.59%
6.11%
4.59%
4.59%
Risk-free
$400
2.48%
0.93%
0.93%
2.48%
0.93%
0.93%
5.97
6.26
6.48
6.86
7.27
7.58
7.83
8.04
5.72
Rate
5.27
5.47
$200
Inflation
2.35%
2.37%
2.37%
2.35%
2.37%
2.37%
Gamma
0.4
0.585
$-
0.585
0.4
0.585
0.585
DEC
16
DEC
17
DEC
18
DEC
19
DEC
20
Citi Power Revenue Allowance
Revenue(3)
(Nominal)
$1,484m
$1,426m $1,441m $3,205m $3,242m $3,345m
Powercor Revenue Allowance
JUN
21
CitiPower Draft Determination
Powercor Draft Determination
VPN Regulated Asset Base
JUN
22
JUN
23
JUN JUN
24
25
CitiPower Revised Proposal
JUN
26
Powercor Revised Proposal
An expected inflation forecast of 2% (6) in the final decision will provide a positive uplift in revenue
(1) Citi Power, Revised Proposal 2021-2026, 3 Dec 2020 (2) Powercor, Revised Proposal 2021-2026, 3 Dec 2020 (3) Standard Control Services Revenue - 'Smoothed' (4) RAB values from RAB roll-forward model (RFM) and
post-tax revenue model (PTRM) submitted with CitiPower and Powercor revised proposals on 3 December 2020 (5) AER: Citi Power and Powercor - Final Decision 2016-2020 updated to $2021 (6) The forecast reflects the new
AER inflation forecast methodology and the short term inflation forecasts in the RBA February Statement on Monetary Policy.
Spark Infrastructure | Investor Presentation | February 2021
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