Guidance for NERL in preparing its business plan for Reference Period 3: Consultation document

Overview

The CAA is seeking views from all interested parties on the CAA’s approach to business plan guidance to NATS (En Route) Plc (NERL) for the period from 2020 to 2024 - Reference Period 3 (RP3).

Following consideration of feedback on this document and engagement with stakeholders, we intend to publish final business plan guidance for NERL in January 2018. These business plans will inform the CAA review for UK performance plan and targets, including the NERL price control, for for RP3.

NERL provides en route and certain approach air traffic services in the UK. As a monopoly, it is subject to economic regulation under the European Union's Single European Sky Performance Scheme for Air Navigation Services and the Transport Act 2000. This legislation provides for the setting of performance targets and incentives for NERL.

Such targets and incentives have been set for the current regulatory period, Reference Period 2 (RP2), which runs from 2015-2019. The European Commission's preparations for RP3 of the performance scheme are under way.

If you would like to discuss the issues raised in the discussion document, we invite contact outside this consultation to be directed to Bronwyn Fraser (economicregulation@caa.co.uk).