Economic regulation of NATS (En Route) Plc: consultation on licence modifications to implement exceptional measures

Overview

We are consulting on making changes to the price controls for NATS (En Route) Plc’s (NERL’s) regulated activities under its air traffic services licence for the year 2022.

The main purpose of these modifications is to disapply this automatic calculation of the traffic risk sharing mechanism for 2022. Instead, allowed revenues will be recovered over a longer period of time to smooth the impact on charges to airspace users.

The period of recovery will be determined through the next price control review (“NR23”). We are also proposing modifications for exceptional measures to remove service quality incentives for 2020 that have been unduly affected by the impact of covid-19 on traffic levels, and further technical modifications necessary to implement the CMA’s determination for the period 2020-2022.

We welcome representations on the licence modifications and policy set out in CAP 2245 to economicregulation@caa.co.uk by no later than 29 October 2021.