Cost of Debt Indexation AIP 2018
Decision
Publication date
Industry sector
- Distribution Network
- Transmission Network
In the RIIO Price Controls, the Corporate Debt Expenditure (CDE) variable value is updated on an annual basis with reference to a trailing average index of debt costs. This model calculates CDE values that have been used for the Annual Iteration Process 2018 for all four RIIO Price Controls.
- For GD1, GT1, ED1 Fast-track and most ET1 licensees, the trailing index covers a 10-year period up to the 31 October 2018.
- For SHE-Transmission, the index also covers 10 years but with bespoke weightings.
- For ED1 Slow-track, the trailing index covers a 14-year period up to the 31 October 2018, and will extend by a year at each AIP.