News & insights

The Australian Competition & Consumer Commission (ACCC) is inviting submissions in response to CEPA’s advice about its approach to determining the weighted average cost of capital (WACC).

The ACCC engaged CEPA to advise on the methods that it should adopt. The ACCC is consulting on the methodologies proposed as part of the voice interconnection services access determination inquiry and the review of NBN Co’s replacement module application.

CEPA’s draft report on WACC methodology and an accompanying note about voice interconnection services WACC are available to download from the ACCC website.

The report sets out what well-accepted Australian regulatory practice looks like and where there are significant disagreements between regulators, it considers the competing approaches proposed by each and the rationale behind them. CEPA also recommends an approach for the ACCC. The note discusses whether a different WACC could be applied for fixed or mobile telecommunication services, whether the approach to the cost of debt is influenced by the regulatory arrangements and compares the draft methodology with the ACCC’s previous approach.

Feedback has been requested, by 3 September 2025, from stakeholders from non-telecommunications industries or stakeholders who are not directly engaged with the voice interconnection services access determinations inquiry.