Electricity Distribution Price Control Review - Background information on the cost of capital

Consultation
  • Upcoming
  • Open
  • Closed (awaiting decision)
  • Closed (with decision)

Publication date

Industry sector

Distribution Network

Ofgem's estimated range for the real pre-tax cost of capital for the next price control period (2005-2010), based on the latest available data, is 4.3%-7.2%, compared with a range of 6%-6.9% at the last price control review. Ofgem proposes to adopt a Vanilla WACC (i.e. WACC without a tax adjustment) in the range of 5.1%-5.9% for the financial modelling for this price control (allowances for tax will be made separately). This isequivalent to a real pre-tax cost of capital in the range of 6% - 7.2%.

Respond name

sp admin

Respond email

Main document

Electricity Distribution Price Control Review -Background information on the cost of capital

Response documents

Energy Networks Association - Cost of Capital Update: Oxera report
Report on Ofgem's proposed cost of capital for electricity distribution network operators. A report for EDF Energy, prepared by NERA
Cost of equity estimates for electricity distribution network operators using a dividend growth model - A report for the DNOs prepared by NERA

Share the page