Economic regulation of capacity expansion at Heathrow: policy update and consultation

Overview

This document follows on from the consultations that we published on the regulatory framework to support capacity expansion at Heathrow airport in January, June and December 2017 and April and October 2018. It consults further on the development of the regulatory framework and includes:

• our proposed approach to taking into account the financeability of Heathrow Airport Limited's (HAL's) activities over the period of capacity expansion;
• our latest thinking on the development of capital efficiency incentives;
• the proposed next steps for introducing a new licence condition to further promote economy and efficiency on the part of HAL; and
• further thinking on the issues that may be raised by alternative arrangements for delivering new capacity.