Cost of Debt Indexation AIP 2020

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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 2020 for the ED1 PCFM.

  • The trailing index covers a 10-year period up to the 31 October 2020.
  • 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 2020, and will extend by a year at each AIP.

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Cost of Debt Indexation Model AIP 2020