CAA publishes CEPA reports about cost of debt, operating and capital expenditure

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13th June 2017
CAA
 
CEPA was commissioned by two UK regulators, Ofwat, the economic regulator for water and wastewater services for England and Wales, and the Civil Aviation Authority (CAA), the economic regulator of British airports, to undertake a study of potential approaches to setting the allowed cost of debt. This report was commissioned to assist both regulators in determining whether, and how, to change their approach to setting the cost of debt in the forthcoming price control determinations (Ofwat’s PR19 and the CAA’s H7) and for any runway capacity determinations in aviation.

Review of efficiency of operating expenditure of Heathrow Airport
The CAA commissioned CEPA to report on the efficiency of operating expenditure (“opex”) at Heathrow Airport Limited (HAL). It is intended to form part of the evidence base that the CAA will use in preparing for the next price control process (H7).

Review of Heathrow Airport’s Q6 capex governance
CEPA was appointed by the CAA to assess whether the new capital expenditure governance regime put in place for the latest control period (Q6) is fit for purpose and providing the intended incentives on Heathrow Airport Limited (HAL) to deliver capital efficiency.

To find out more about CEPA's economic and regulatory experience, please contact Richard Rodger by email or T. +44 (0)20 7269 0210.