Gas distribution price control final proposals

Ofgem final proposals (133 pages, PDF and 127 pages, PDF) for the gas distribution price controls from 2008.

The allowed cost of equity has been increased since the initial proposals and update: 7.25 per cent instead of 7 per cent (relative to RPI). The other main financial parameters remain the same: 62.5 per cent gearing and 3.55 per cent cost of debt (relative to RPI). The final parameters are very close to those recommended by the Competition Commission for BAA Heathrow airport.

The distribution companies are asked to indicate acceptance or otherwise by Monday 7 January 2008.

For further information or advice please contact Franck Latrémolière.

Filed under Ofgem, Price controls.

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