UKRN Cost of Capital report – 2025 update

The 2025 edition of the UKRN Cost of Capital Annual Report provides updated data and assumptions for members’ price control decisions, with the addition of two more over the past year – Ofwat’s PR24 and Utility Regulator’s RP7.

The report details the values, methodology and data sources for key parameters used by regulators to inform cost of capital calculations (e.g. risk-free rate, return on debt, total market return, betas) and includes a commitment by members to conduct a review of the 2023 guidance on the methodology for setting the cost of capital next year.

If you would like more information about the UKRN Cost of Capital network, or anything contained in the report, please contact ukrn@caa.co.uk.