Cost of Debt Indexation Model 31 October 2016
- Content:
- Decision
- Publication date:
- Last updated:
- 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 for all four RIIO Price Controls that has been used for the Annual Iteration Process 2016.
- For GD1, GT1 and most ET1 licensees, the trailing index covers a 10 year period up to the 31 October 2016.
- For SHE-Transmission, the index also covers 10 years but with bespoke weightings.
- For ED1 Fast-track, the trailing index covers a 10 year period up to the 31 October 2016.
- For ED1 Slow-track, the trailing index covers a 12 year period up to the 31 October 2016, and will extend by a year at each AIP.