The UKRN guidance on the methodology for setting the cost of capital brings together and consolidates existing methodologies used for setting the allowed return in regulated sectors. It recognises the importance of consistency across time and the benefits brought by aligning regulatory approaches to investors and customers.

The final paper incorporates feedback received through the consultation process and we are also publishing a summary of these with responses.

Published 23rd March 2023

The original consultation can be found: here
The consultation process can be found: here
The consultation FAQ can be found: here
The individual responses to the consultation can be found: here