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GAZETTE NOTICE NO. 12816

the Energy Act

ACT

PURSUANT to section 163 (3) of the Energy Act, 2019, the Energy and Petroleum Regulatory Authority publishes guidelines for the computation of allowed Return on Equity for generation, transmission and distribution projects in the country. The Capital Asset Pricing Model (CAPM) shall be the preferred approach of the Authority. The risk-free rate shall the rate earned in Government issued long term bonds and shall be 12.8%. The Market premium shall be the difference between the market return and risk-free rate. The Beta shall be determined for each company individually. The Return on Equity allowed for public utilities shall be 10.5% post tax. DANIEL K. BARGORIA, Director-General.

DANIEL K. BARGORIA,

Director-General.

Extracted Entities (1)

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12816

Details

Act / Legislation: the Energy Act
Signed By: DANIEL K. BARGORIA
Title: Director-General
Page: 1
Extraction Method: regex

Source Gazette

Vol. CXXIII No. 238

Published 17th November 2021