Ofcom consultation on draft guidance for Arqiva regulator

Ofcom consultation (22 pages, PDF) on draft guidance to the adjudicator who is to regulate the UK terrestrial broadcast transmission monopoly Arqiva following the inquiry into its merger with National Grid Wireless.

The document sets out a standard utility regulation approach, including the concept of a regulatory asset base and a suggested 10.7 per cent pre-tax nominal rate of return; but it also mentions the possibility of revaluing assets by reference to their expected economic life rather than their cost to Arqiva.

It briefly discusses structure of charges issues, including long run incremental costs, “additional mark-ups for the recovery of common costs” and price discrimination.

Responses by Tuesday 18 November 2008.

For further information or advice please contact Franck Latrémolière.

Filed under Media, Ofcom, Price controls.

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