The CAA has published a report prepared by CEPA, which assess whether the new capital expenditure governance regime put in place in Q6 is fit for purpose and providing the intended incentives on HAL to deliver capital efficiency.
The advice was split into three parts reflecting the terms of the commission:
- A review of effectiveness to assess whether the capex governance arrangements are delivering the anticipated benefits.
- Describe impact of potential problems identified.
- Make recommendations on the most appropriate approach to assess capital efficiency that should be used for H7 price review.