Economic regulation of Heathrow Airport Limited: Setting an interim price cap for 2023

Overview

This consultation sets out the interim price cap for 2023 and replaces the holding cap that was put in place by CAA in 2022.

This consultation sets out draft modifications to amend the per passenger charge price that Heathrow Airport Limited (HAL) can charge Airline customers in 2023 up until CAA publishes its final determination and licence modifications later in the same year.

In addition to the above, we are also consulting on a series of minor amendments to HAL’s licence which effectively remove two elements from the Service Quality and Rebates and Bonuses (SQRB) scheme.  These amendments facilitate HAL’s preparations to implement Outcomes Based Regulation (OBR) framework that we set out in our final proposals.

Views invited

We welcome views on all the proposals included in this document.

Please e-mail responses to economicregulation@caa.co.uk by no later than close of business on Thursday 22 December 2022.

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.

What happens next

Following this consultatin and having taking into consideration stakeholder responses, we expect to publish our decision on the level of the interim price cap promptly in the New Year, with the licence modifications taking legal effect in February 2023.