Published: 23rd March 2023
UKRN are delighted to announce that we have today published the guidance on the methodology for setting the cost of capital.
The regulators involved in setting the main price controls recognise the value of further alignment in the approaches and ultimately the common parameter values used in each sector.
In November 2021, Ofgem, Ofcom and Ofwat were joined by the CAA, the Utility Regulator and the ORR to establish the UKRN Cost of Capital Task Force, with a clear objective to collaborate on the production and delivery of a set of guidance which aims to achieve great transparency and consistency in decisions.
The delivery of this guidance is a critical step towards reducing uncertainty associated with final price control outcomes and allow for easier cross-sector comparisons.