Economic regulation of Heathrow Airport Limited: Policy update and consultation

Overview

This consultation deals with the following main issues:

• the responses we received to the April 2020 Update and our approach to protecting the interests of consumers;
• requirements for HAL’s revised business plan (“RBP”), which it is due to publish in the autumn of 2020;
• improving the efficiency incentives and capital expenditure governance arrangements for the H7 price control period; and
• further thoughts on our approach to assessing HAL’s financeability and setting the cost of capital for the H7 price control period.

Heathrow Airport Limited has paused its work on capacity expansion at Heathrow airport. We also address the regulatory treatment of expenditure incurred to date on expansion.

Consultation document

• Economic Regulation of Heathrow Airport Limited: Policy Update and Consultation (CAP1940), June 2020

Consultation studies published alongside this consultation

• Arcadis review of the initial tests for Heathrow West proposal 
• PwC Report: Independent Planning Cost Review for 2018 
• Flint Report on WACC/Cost of Capital April 2020  

Views invited

We welcome views on all the issues raised in this document and, in particular, the issues set out in the executive summary and those highlighted in chapters 1 to 4.

Please e-mail responses to economicregulation@caa.co.uk

We expect to publish the responses we receive on our website as soon as practicable after the period for representations expires. Any material that is regarded as confidential should be clearly marked as such and included in a separate annex. Please note that we have powers and duties with respect to information under section 59 of the Civil Aviation Act 2012 and the Freedom of Information Act 2000.