Expertise

Spain’s competition and markets authority recommends lower cost of capital for Aena’s upcoming regulatory period

Following CEPA's advice to airlines, Spain’s competition and markets authority has recommended a reduction in Aena’s airport charges for the upcoming 2027-31 regulatory period.

Cost of capital and financial framework

CEPA provided support on financial issues on behalf of the airlines on the H8 price control that applies to Heathrow Airport. The advice focused on the cost of capital and policy mechanisms, such as traffic risk sharing, designation of the single till, inflation indexation and the treatment of volume risk.

CEPA submits cost of capital report on Heathrow H8 price control

In response to the Civil Aviation Authority’s Initial Proposals for the H8 price control for Heathrow Airport, CEPA has submitted a report on behalf of the International Air Transport Association.

Sector specific methodology decision: Electricity Distribution price control (ED3)

Ofgem has today published CEPA’s report on regulatory depreciation in ED3, prepared to support Ofgem’s thinking ahead of the ED3 determinations.

CMA publishes Final Redetermination on PR24 price controls

The Competition and Markes Authority (CMA) today published their Final Redetermination on the PR24 price controls (2025-30) covering the water sector in England and Water.

CEPA support to Ofcom on Telecoms Access Review 2026-2031

CEPA was commissioned by Ofcom to provide an independent view of relevant betas and other weighted average cost of capital parameters in support of the Telecoms Access Review, which aims to promote competition and investment in fibre networks.

Cost of capital: Beta and gearing for the Telecoms Access Review 2026

CEPA was appointed to consider the appropriate beta, cost of debt and gearing assumptions for the Telecoms Access Review 2026.

Weighted average cost of capital at Aena Airports

CEPA was engaged by airline representatives to advise on the appropriate cost of capital for AENA SA, the Spanish Airports Authority. The project involved detailed analysis to determine an independent WACC estimate, a review of AENA's proposed cost of capital and presentation to stakeholders (including the regulator, the CNMC) in Madrid on those proposals.

Financial consultancy for Irish electricity networks Price Review (PR)6

CEPA was commissioned to provide economic and technical advice in support of Price Review (PR)6, for the electricity network companies in Ireland (EirGrid and ESB Networks).

CEPA helps CRU to provide a balanced framework that enables necessary long-term investment in Ireland’s electricity infrastructure

The Commission for Regulation of Utilities (CRU), Ireland’s independent energy and water regulator has today published its Final Determinations for the next electricity networks price controls, Price Review Six, which will run to December 2030.

DESNZ publishes CEPA report on hurdle rates for electricity generation technologies

The UK Department for Energy Security and Net Zero (DESNZ) has published CEPA research and analysis on estimates of hurdle rates for a range of different electricity generation technologies.

Ofgem publishes economic guidance for Sizewell C Nuclear RAB model

Ofgem has published Economic Guidance on the economic regulation of Sizewell C nuclear power station, including a report by CEPA on the risk and return for the operational phase under a Nuclear RAB model.

Cap and floor arrangements for long duration electricity storage projects

CEPA, working with ESP Consulting, advised on the design of the proposed cap and floor scheme for Long Duration Electricity Storage (LDES). The team i) assessed potential gaming risks, ii) developed and evaluated approaches for setting cap and floor levels, iii) advised on the revenue stack for LDES assets, and iv) advised on the overall financial policy framework for the regime.

Single Electricity Market Operator 2024-29 Price Control Final Determination published

CEPA is pleased to have supported the Commission for Regulation of Utilities in Ireland and the Utility Regulator in Northern Ireland, with the 2024-2029 price control for the Single Electricity Market Operator, culminating with the publication of the Final Determination today.

Financial economics / regulatory finance: Consultant, Senior or Managing Consultant

We are seeking an exceptional individual to join us in London, to support CEPA's work in financial economics / regulatory finance. We are interested in candidates applying for roles between our Consultant and Managing Consultant grades.

Estimating the asset beta for BT Group

CEPA has been commissioned by Ofcom, the UK's regulator for communications services, to provide an independent view of relevant betas and other weighted average cost of capital parameters in support of the Telecoms Access Review 2026.

Report on cost of capital for Heathrow H8 price review

CEPA, on behalf of the International Air Transport Association, publishes review of Civil Aviation Authority view on the cost of capital for the H8 price control.

Price Review (PR)24 finance delivery partner

CEPA supported Ofwat on the risk and return workstream for PR24. This included advice on the cost of capital, financeability and other broader regulatory finance issues. CEPA’s role involved an assessment of the company business plans, analytical outputs and development of independent CEPA reports on the cost of equity.

CEPA co-founder knighted in the King’s 2024 Birthday Honours

We congratulate Dr Keith Palmer OBE, who has been recognised for his exceptional contribution to international development.

The Weighted Average Cost of Capital (WACC) for various electricity generation and storage technologies in Australia

AEMO Services commissioned CEPA to provide independent advice on appropriate assumptions on the WACC. CEPA’s report has been published and is available from AEMO Services’ website.

Women in Economics: Breaking Barriers Together

CEPA Senior Consultant Charlotte Hallam joined the panel for the Women in Economics event, along with female economists from the Bank of England, KPMG and the Fraser of Allander Institute.

Strategic Partner in Finance for energy networks in the RIIO2 price controls

CEPA worked on behalf of Ofgem, the GB energy regulator, on financial issues throughout the RIIO-2 price controls (GD/T2/ED2) and subsequent CMA appeals for regulated energy network companies.

CEPA supports ComReg’s Review of Weighted Average Cost of Capital in Irish Telecommunications Sector

ComReg - the Irish Telecommunications Regulator - has reviewed its approach to assessing the cost of capital, with assistance from CEPA. The consultation on the approach is now live.