Cost of Capital – 2025 annual report & review of UKRN guidance

Today we have published the 2025 update to our Cost of Capital report, which sets out data and assumptions for key parameters used by regulators to inform cost of capital calculations (e.g. risk-free rate, return on debt, total market return, betas).

This year’s report includes the latest price review decisions across UKRN members (Ofwat’s PR24 and Utility Regulator’s RP7), as well as a commitment by members to conduct a review of UKRN’s 2023 guidance on a methodology for setting the cost of capital next year.

Download the report below or head to our publications page for more information.

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