Setting the cost of capital

The UK Regulators Network (UKRN) has published its final guidance on the cost of capital methodology for use in price controls.

The guidance sets down nine recommendations on how signed-up regulators (including Ofcom) should set the allowed return on capital.

Ofcom has committed to have due regard to these recommendations in our future price control decisions, which should make future decisions in relation to cost of capital more consistent and predictable for affected stakeholders. The guidance will be subject to a periodic review by UKRN to ensure its recommendations remain up to date.

Read the full guidance

UKRN guidance on the methodology for setting the cost of capital