The current regulatory controls on the charges and services that Heathrow Airport Limited (HAL) offers to airlines, and ultimately to consumers, are due to expire on 31 December 2019.
We have therefore launched a review (called 'H7') of the appropriate regulatory arrangements that should be put in place after that date, including our approach to the economic regulation of new airport capacity and any associated costs that may be incurred during the current
regulatory period (Q6).
working paper focuses on technical issues relating to the cost of capital and incentives for the next main H7 price control review of HAL.
The CAA is consulting on a number of issues relating to the regulation of Heathrow Airport Limited's (HAL's) price control and in particular issues relating to new capacity. The report follows on from our recent consultations CAP 1610 and CAP 1658.
This document follows on from our consultations on the regulatory framework to support capacity expansion at Heathrow in June and December 2017. It consults further on the development of the regulatory framework and includes:
Our final report to the Secretary of State under section 16 of the Civil Aviation Act 1982 reporting on airport-airline engagement will be published shortly.
CAP1610 follows on from the June 2017 Consultation on the core elements of the regulatory framework to support capacity expansion at Heathrow.
It confirms our approach in respect of key elements of the regulatory framework for Heathrow Airport Limited and discusses issues around the relationship between the regulatory framework and alternative delivery mechanisms, the cost of capital, financeability, financial resilience, the regulatory treatment of early construction costs and the further extension of existing Q6 price control.
Consultation on core elements of the regulatory framework to support capacity expansion at Heathrow
This consultation follows from our January 2017 consultation on the priorities and timetable for our programme of work on the economic regulation of new capacity at Heathrow. It confirms our priorities and seeks views on our latest thinking on the development of core elements of the regulatory framework for Heathrow Airport Limited (HAL). These core elements also build on our discussion document on Strategic Themes for the review of HAL's charges. The consultation also updates our thinking on the timetable issues discussed in our guidance for HAL in preparing its business plans for the H7 price control review.
The CAA published a number of documents with initial policy ideas prior to the Government's announcement that Heathrow North West Runway was the preferred option for capacity expansion, and these publications are below.
The Secretary of State for Transport has asked the CAA to prepare a report on how well Heathrow Airport Limited as engaged with airline community on the design of the capacity expansion scheme. Below are the documents relating to this work.
An independent expert panel, the Consumer Challenge Board (CCB), will help ensure that the H7 process is driven by a robust understanding of what consumers value.
Find out more about the H7 Consumer Challenge Board
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