Abu Dhabi sewerage price controls: first consultation

RSB consultation (30 pages, PDF) on a proposed price control for ADSSC, the Abu Dhabi sewerage service company. The regulator proposes to follow the RCV/building block approach used for other Abu Dhabi regulated infrastructure businesses. The model follows many of the precedents set by UK regulators; the main difference is the use of ex post adjustments to pass-through any deviations between provisional allowances and a measure of necessary and efficiently procured capital expenditure determined through a backward-looking study (ahead of a future price control review). For the operating expenditure efficiency assumption, a figure of 5 per cent a year relative to an Abu Dhabi consumer price index is mentioned by reference to previous RSB decisions, and no details are given of any proposed work to refine or substantiate such an assumption in the case of ADSSC. Responses by Wednesday 15 November 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Price controls, Water.

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