Cost of debt indexation model for SHE Transmission PLC - 31 October 2014
Guidance
Publication date
Industry sector
Transmission Network
Corporate Debt Expenditure
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 Price Control Financial Model.
The workings for the corporate debt cost percentage used in Annual Iteration Process 2014 are available below.
This model includes the updated cost of debt value for SHE Transmission PLC following the Annual Iteration Process.