UKRN Cost of Capital – consultation on revised guidance

Today, UKRN has published revised guidance on a methodology for setting the cost of capital, which will be open to consultation for eight weeks.

This updates the March 2023 guidance on a methodology for setting the cost of capital and, following the commitment made in last year’s UKRN Cost of Capital Annual Report, regulators have once more pooled their thinking to respond to new evidence and experience of using the guidance to identify areas where further alignment can usefully be achieved.

The purpose is to increase the consistency in how regulators approach calculating the cost of capital and to increase the transparency of the underlying assumptions and processes for setting cost of capital, and we are particularly keen to hear views from regulated firms, investors and consumer bodies, as well as the public and any other interested parties.

For more information about the consultation, including access to the revised guidance and how to submit a response, please see our publications page.