The UK Regulators Network (UKRN) has published its annual update report on the cost of capital cost of capital decisions taken by regulators over the last year.

The new information paper updates last year’s Cost of Capital – Annual Update Report which came out in March 2016. The report provide an update on the cost of capital decisions taken by regulators over the last year and to highlight the reasons why the decisions about certain components of the cost of capital differ from the most recent decisions made by their peers.

UKRN is a network formed by 13 of the UK’s sectoral regulators – Ofwat is one of six regulators who have made contributions to the paper.

All regulators adopt a weighted average cost of capital (WACC) approach representing the cost of a blend (the gearing) of debt and equity finance.

Participating regulators have signed up to the UKRN Cost of Capital Principles to ensure continued collaboration on cost of capital issues. 

Click here to download Cost of Capital – Annual Update Report May 2017