Cost of debt indexation model 31 October 2014
Guidance
Publication date
Industry sector
- Transmission Network
- Distribution Network
Corporate Debt Expenditure (CDE)
Under the RIIO Price Control, the cost of equity and notional gearing percentages are fixed for the whole of the Price Control Period.
However, the corporate debt cost percentage is updated on an annual basis with reference to a trailing average index of debt costs. The update is put into effect through the Annual Iteration Process for the PCFM.
The workings for the corporate debt cost percentage used in Annual Iteration Process 2014 are available below in the file called Cost of debt indexation model 31 October 2014.