Fair rate of return

Fair rate of return

The rate of return that state governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and provide service upgrades to their customers.

Fair Rate of Return

The profit that a government allows an industry to make if it deems that industry to be necessary for public function. A state may impose a fair rate of return on industries, such as utilities, to keep services affordable for consumers. Critics of this practice contend that this is economically inefficient and ultimately harms consumers, though this is a matter of considerable dispute.
References in periodicals archive ?
This ensures a fair rate of return to private investors.
Our primary concern throughout this process is to ensure that we are able to achieve a fair rate of return in order to continue our investment in the future of the UK's infrastructure.
These include removing current barriers to investment and making sure that anyone who chooses to invest in fibre can earn a fair rate of return for their shareholders.
We pay pounds 45bn already in the UK and we don't get anywhere near a fair rate of return.
If, as an example, the salesman misrepresented the potential of earnings and it would be clear to a court that it would be virtually impossible to earn money or get a fair rate of return for the investment, then it could be shown the proposition was flawed.
Beyond this, retailers should look for products that offer distinctive benefits within the category, fulfill a specific consumer need and have a consumer acceptance factor that will provide the retailer with a fair rate of return.
However, we need to adjust rates in order to maintain quality customer service, continue to modernize and enhance the local network, and have an opportunity to earn a fair rate of return on our Washington investments.
The report, released by the Oregon Lottery Commission, found that bars and taverns receive a fair rate of return once they collect commissions in the $8,000-to-$10,000 range.
The Ministry has insisted that its contract prices with continuing care hospitals have generally provided a fair rate of return, and claims it has increased overall aged-care spending by $25 million.
Rate of return policies when adopted would typically claim to base rates and generate transfers to achieve a fair rate of return.
110 percent of) a fair rate of return on its investments, which is the return that is just sufficient to attract additional capital to the organization and that is commensurate with the organization's operating risk (Phillips, 1993).