UKRN has published the 2019 cost of capital report. The report provides a summary of the most recent cost of capital decisions and analysis by each regulator, providing an easily accessible reference document for those interested in our sectors. It also sets out where regulators share a common approach, and where approaches diverge to reflect differences between sectors, regulatory timings and structures.
The report is the product of the UKRN’s cost of capital network. The network brings together specialists from across UKRN members to share expertise and best practice, and to develop shared approaches where appropriate.
The cost of capital is an important input into regulators’ price control decisions, helping ensure companies have an incentive to invest and the opportunity to earn a fair return on those investments.
UKRN members will continue to work collaboratively on these issues, learning from each other, sharing best practice and, where appropriate, aligning our approaches.