Economic regulation of Heathrow Airport Limited: Consultation on the Way Forward

Overview

This consultation document summarises our broad approach to the remainder of the Heathrow Airport Limited (HAL) H7 price control review programme. It deals with the following main issues:

• an update on timetable and recent developments (with our response to HAL’s request for a Covid-19 Related RAB adjustment being set out in a document published alongside this one);
• an overview of our proposed approach to the form of regulation for HAL, including our intention to set a 5-year price control;
• our assessment of HAL’s revised business plan (“RBP”) including our proposed approach to developing projections for each of the key price control “building blocks” that will inform our Initial Proposals due to be published this summer; and 
• an update on our approach to introducing traffic or revenue risk sharing, developing stronger capital efficiency incentives, moving towards outcome based regulation (OBR), and our approach to assessing HAL’s financeability and the affordability of its charges.

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 5.

Please e-mail responses to economicregulation@caa.co.uk by no later than 18 June 2021. 

We expect to publish the representations on our website for other interested parties to read after the period for written representations expires. Any material that is regarded as confidential should be clearly marked as such and provided in a separate appendix. Please note that we have powers and duties with respect to information under Section 102 of the Act and the Freedom of Information Act 2000.