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UK – EU Transition, and UK Civil Aviation Regulations

To access current UK civil aviation regulations, including AMC and GM, CAA regulatory documents, please use this link to UK Regulation. Please note, if you use information and guidance under the Headings below, the references to EU regulations or EU websites in our guidance will not be an accurate information or description of your obligations under UK law. These pages are undergoing reviews and updates.

Economic regulation of Heathrow Airport Limited from January 2022: notice of licence modifications, December 2021

CAP2305 gives notice under section 22(6) of the Civil Aviation Act 2012 ('CAA12') of the CAA's decision to modify Heathrow Airport Limited's (HAL) Licence granted under section 15 CAA12. The modifications that the CAA has decided to make are to:

  • replace the whole of Condition C1 (Price Control) with a new Condition C1 (Price Control), which includes a “holding price cap” for the Regulatory Year 2022;
  • modify paragraph 4 in Schedule 1 to the Licence (Statement of Standards, Rebates and Bonuses) to ensure that rebates and bonuses can continue to be accrued in relation to performance against the targets set in Tables 1a to 10 in that Schedule;
  • remove the definition of “Regulatory Period” in Condition A3 (Definitions) at Condition A3.1(f) and all subsequent references to that term throughout the Licence;
  • amend the definition of “Regulatory Year” in Condition A3 (Definitions) at Condition A3.1(g) to remove references to specific years so that it refers only to the twelve-month period from 1 January to 31 December in any year; and
  • include a reference to the Regulatory Year 2022 in Condition C2 (Charges for other services) at Conditions C2.5 and C2.6.
Close Economic regulation of Heathrow Airport Limited from January 2022: notice of licence modifications, December 2021

Economic regulation of Heathrow Airport Limited: H7 Initial Proposals Draft Licence Modifications, November 2021

CAP2275 sets out draft modifications to Heathrow Airport Limited's (HAL) licence to show how the CAA proposes to implement the policy proposals in the October 2021 Initial Proposals for HAL's H7 price control review.

The consultation deadline has been extended to close of business on Friday 21 January 2022.

Responses to CAP2275

Close Economic regulation of Heathrow Airport Limited: H7 Initial Proposals Draft Licence Modifications, November 2021

Economic regulation of Heathrow Airport Limited: H7 Initial Proposals - Working paper on outcome based regulation, November 2021

CAP2274 follows on from the October 2021 Initial Proposals consultation and provides further details of the CAA's proposed approach to implementing outcome based regulation (OBR) in the H7 price control for Heathrow Airport Limited (HAL). It sets out the CAA's Initial Proposals on targets, rebates and bonuses and summarises the key proposed changes to HAL's licence.

The consultation deadline has been extended to 12 noon on Tuesday 18 January 2022.

Reports by external consultants

Responses to CAP2274

Close Economic regulation of Heathrow Airport Limited: H7 Initial Proposals - Working paper on outcome based regulation, November 2021

Economic regulation of Heathrow Airport Limited: H7 Initial Proposals, October 2021

This consultation sets out our Initial Proposals for the Heathrow Airport Limited's (HAL) H7 price control review. It includes:

  • This summary document which discusses our overall approach and the impact of the particularly challenging circumstances created by covid-19 on Heathrow airport, the price control review and these Initial Proposals.
  • Section 1 which discusses:
    • our proposed approach to the form of regulation for HAL, including our intention to introduce traffic risk sharing arrangements and to set a 5-year price control; and
    • our projections for each of the key price control 'building blocks' (including numbers of passengers, costs and commercial revenues) that have informed our Initial Proposals.
  • Section 2 which sets out:
    • our views on HAL's request for a covid-19 related RAB adjustment, the treatment of asymmetric risk, the WACC, finance ability and our provisional range for the H7 price control on airport charges; and
  • Section 3 which describes:
    • our proposals for developing stronger capital efficiency incentives and implementing outcome based regulation (OBR); and
    • our approach to dealing with airport charges in 2022 noting the particularly difficult and challenging circumstances that have been created by the pandemic and its impact on the CAA's H7 price control timetable.
  • The appendices provide further information on the main issues set out in this consultation.

Initial Proposals

We are also publishing, alongside these Initial Proposals, a number of supporting consultancy studies.

Reports by external consultants

  • CAP2266A - Review of H7 Opex and Commercial Revenues: Initial Assessment and Forecasts, CEPA Taylor Airey, October 2021
  • CAP2266B - HAL RBP Update: Capex plan Review, Arcadis, October 2021
  • CAP2266C - HAL RBP Update: Review of capex categories and delivery objectives, Arcadis, 2021
  • CAP2266D - H7 Forecast Review [Passenger Forecasting], Skylark, October 2021
  • CAP2266E - Estimating Heathrow's beta post Covid-19, Flint, August, 2021
  • CAP2266F - Review of Consumer Acceptability Testing Research, FTI Consulting, October 2021

Responses to the RBP Capital Plan

Responses to CAP2265 H7 Price Control

Responses to CAP2265 2022 Charges 

Close Economic regulation of Heathrow Airport Limited: H7 Initial Proposals, October 2021

Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, April 2021

On 27 July 2020, HAL sent us a request that we should make an adjustment to its regulatory asset base (RAB) to address the shortfall in the revenue it expected to recover in 2020 and 2021 due to the severe impact of the covid-19 pandemic on its business. Since then, HAL has made a series of further representations to us in support of its request.

CAP2140 sets out the CAA's response to HAL's request and its further representations. It provides our decision on the regulatory intervention package which we will apply ahead of making our proposals for the next (H7) price review. It follows on from our October 2020 and February 2021 Consultations on these matters.

In particular, this document sets out:

  • the process which we have followed in reaching our decision, including our consideration of stakeholders' consultation responses;
  • an updated and final assessment framework, based on our statutory duties including the “better regulation principles” which we must have regard to under the Civil Aviation Act 2012 (CAA12)
  • our assessment of the different options for regulatory intervention using that assessment framework; and
  • details of the early intervention we have decided to take and our proposed next steps.

Responses to CAP2140

Close Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, April 2021

Economic regulation of Heathrow Airport Limited: Consultation on the Way Forward, April 2021

CAP2139 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 finance ability and the affordability of its charges.

Responses to CAP2139

AOC LACC

British Airways

Heathrow Airport Limited

Heathrow West

Close Economic regulation of Heathrow Airport Limited: Consultation on the Way Forward, April 2021

Economic regulation of Heathrow: working paper on Q6 capital expenditure and early expansion costs, April 2021

CAP1996 discusses our treatment and assessment of two categories of historical capital expenditure (capex) incurred by Heathrow Airport Limited (HAL), namely capex incurred during the Q6 price control period; and early expansion costs incurred before March 2020.

In relation to the Q6 capex review, this working paper covers

  • an overview of stakeholder responses received to our September 2020 Working Paper;
  • an update on the key policy areas; and
  • our emerging conclusions from this review.

In relation to early expansion costs, this working paper provides:

  • an update on our policy; and
  • our assessment of costs incurred by HAL before March 2020.

Responses to CAP1996

Close Economic regulation of Heathrow: working paper on Q6 capital expenditure and early expansion costs, April 2021

Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, February 2021

In October 2020, we published a consultation document in response to the request made by Heathrow Airport Limited (HAL) in July 2020 for the CAA to change its approach to the calculation of HAL's regulatory asset base (RAB) to take account of the impact of the covid-19 pandemic.

CAP2098 and CAP2098A provide our latest views on HAL's request and our developing thinking on whether HAL's price control framework should be changed in response to the circumstances created by the covid-19 pandemic. In particular the document sets out:

  • our framework for identifying and assessing options for intervention;
  • the assessment of options, including HAL's proposal for a RAB adjustment, in the light of this framework and the views of HAL and airlines in response to the October 2020; and
  • our next steps and timetable for dealing with these matters

Responses to CAP2098

Close Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, February 2021

Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, October 2020

CAP1966 and CAP1966A are published in response to the request made by Heathrow Airport Limited (HAL) in July 2020 for the CAA to change its approach to the calculation of its regulatory asset base (RAB) to take account of the actual and expected impact of the covid-19 pandemic on its revenues in 2020 and 2021. It provides our initial views on HAL's request and proposes next steps for consultation.

The document sets out:

  • the background to HAL's request and the initial views of airlines in response to it;
  • our approach to assessing HAL's request;
  • our initial assessment of HAL's request; and
  • proposals for our next steps and timetable for dealing with the issues raised by the request.

Stakeholder submission published alongside this consultation

Responses to CAP1966

Close Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, October 2020

Economic regulation of Heathrow: working paper on the efficiency of HAL’s capital expenditure during Q6, September 2020

CAP1964 discusses our approach to reviewing Heathrow's Airport Limited (HAL's) capital expenditure (capex) incurred during the Q6 price control. In particular, it includes:

  • a recap of our previous work in this area;
  • our method for selecting a sample of projects for review and a summary of the findings of our consultants (Arcadis) on whether there is evidence of inefficiency in relation to these projects;
  • our proposed approach to reviewing these findings including in the context of broader issues; and
  • the next steps.

Consultancy studies published alongside this consultation

  • CAP1964A Arcadis Heathrow Q6 Capex Efficiency Review

Responses to CAP1964

Close Economic regulation of Heathrow: working paper on the efficiency of HAL’s capital expenditure during Q6, September 2020

Economic regulation of Heathrow Airport Limited: working paper on capital expenditure efficiency incentives, August 2020

CAP1951 follows on from the June 2020 Consultation (CAP1940) and provides further details of our proposed approach to capital efficiency incentives for Heathrow Airport Limited including:

  • recap of our previous work in this area, including the initial views of stakeholders;
  • our proposed criteria for developing new incentives; and
  • further details on our broad approach to developing capital efficiency incentives.

Responses to CAP1951

Close Economic regulation of Heathrow Airport Limited: working paper on capital expenditure efficiency incentives, August 2020

Economic Regulation of Heathrow Airport limited: Policy update and consultation, June 2020

CAP1940 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 finance ability and setting the cost of capital for the H7 price control period.

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

Consultancy studies published alongside this consultation

Responses to CAP1940

Close Economic Regulation of Heathrow Airport limited: Policy update and consultation, June 2020

Economic regulation of Heathrow: programme update, April 2020

CAP1914 provides an update on our programme for the development of the economic regulation of Heathrow Airport Limited (“HAL”) in the light of the very significant uncertainties brought about by:

  • the severe impact of the Covid-19 pandemic on the aviation sector as a whole and passenger numbers at Heathrow airport;
  • the Court of Appeal's decision setting aside the Airports National Policy Statement; and
  • HAL's subsequent decision to stop its programme for expanding Heathrow airport.

It outlines our proposals for changing our overall approach to developing the regulatory regime for HAL in the light of these developments.

Responses to CAP1914

Close Economic regulation of Heathrow: programme update, April 2020

Economic regulation of Heathrow Airport Limited: further consultation on regulatory framework and financial issues, January 2020

CAP1876 consults on our approach to developing the regulatory framework for Heathrow Airport Limited (HAL) to support the efficient delivery of capacity expansion at Heathrow airport.

It outlines and consults on our approach to incentives for efficiency, allowed returns and other financial issues.

This consultation follows on from the March 2019 consultation on the regulatory framework for HAL (CAP1782).

Consultancy studies published alongside this consultation

  • CAP1876A is a report that we commissioned by Grant Thornton on the regulatory treatment of allowances for HAL's corporation tax costs.
  • CAP1876B is the CEPA report: H7 financial issues

Responses to CAP1876

Close Economic regulation of Heathrow Airport Limited: further consultation on regulatory framework and financial issues, January 2020

Economic regulation of Heathrow Airport Limited: policy update and consultation on the early costs of capacity expansion, December 2019

CAP1871 provides further information on costs that Heathrow Airport Limited (HAL) expects to incur in advance of receiving a development consent order (DCO) under the Planning Act 2008 for the expansion of Heathrow airport.

It outlines the approach to this early spending that we consider is in the best interest of consumers and the regulatory arrangements that should apply.

This consultation follows on from our July 2019 consultation on early costs and the regulatory timetable (CAP1819).

Consultancy studies published alongside this consultation

  • CAP1871A, Independent Peer Review of Recent Research on the Existence of Scarcity Rents at Heathrow, Institute for Transport Studies, August 2019
  • CAP1871B, Arcadis Heathrow Airport Limited Masterplan review Step 0 Report, October 2019
  • CAP1871C, Supplementary information request Pre-DCO category C costs CAA-H7-301, Heathrow Airport Limited, September 2019

Responses to CAP1871

Close Economic regulation of Heathrow Airport Limited: policy update and consultation on the early costs of capacity expansion, December 2019

Economic regulation of Heathrow Airport Limited from January 2020: notice of licence modifications, November 2019

CAP1852 gives notice under section 22(6) of the Civil Aviation Act 2012 ('CAA12') of the CAA's decision to modify Heathrow Airport Limited's (HAL) Licence granted under section 15 CAA12. The modifications that the CAA has decided to make are to:

  • extend the current price control by a two year interim period, up to 31 December 2021, taking account of the commercial arrangements between HAL and certain airlines for this period;
  • include a new licence condition to promote economy and efficiency by HAL in the operation, maintenance and development of Heathrow airport; and
  • make minor changes to update the price control arrangements, remove obsolete terms and make a change to HAL's regulatory audit requirements to reflect current auditing guidelines.

The decision on these licence modifications follows on from the notice issued by the CAA under section 22(2) of CAA12 in August 2019 ('the August 2019 Consultation'), which built on the CAA's consultations on interim price control arrangements in February 2019 ('the February 2019 Consultation') and April 2018 ('the April 2018 Consultation') and its consultation on the regulatory framework to support capacity expansion at Heathrow in March 2019 ('the March 2019 Consultation').

Close Economic regulation of Heathrow Airport Limited from January 2020: notice of licence modifications, November 2019

Economic regulation of Heathrow Airport Limited: an update on the CAA surface access policy, October 2019

CAP1847 follows on from the consultations that we published on the regulatory framework to support capacity expansion at Heathrow airport in January, June and December 2017 and April and October 2018. It provides an update of our policy on the surface access costs that Heathrow Airport Limited (“HAL”) should be allowed to recover from airport charges.

As noted above we have consulted a number of times on surface access policy and now regard the high-level policy as set out in this paper as settled. Nonetheless, we will consult where appropriate on the application of this policy to projects or groups of projects that HAL brings forward for funding under these arrangements (and if the application of this policy were to reveal unexpected difficulties we do not rule out consulting further on the underlying policy).

Close Economic regulation of Heathrow Airport Limited: an update on the CAA surface access policy, October 2019

Economic regulation of Heathrow: working paper on financial resilience and ring fencing, August 2019

CAP1832 focuses on options the CAA is considering to provide further assurance that Heathrow Airport Limited (“HAL”) operates in a financially resilient manner and that risks to consumers arising from financial distress are appropriately mitigated while not cutting across the financing arrangements HAL already has in place to support its regulated business. It considers options for possible changes to the financial resilience and ring fencing provisions in HAL's licence that may be appropriate, in particular, given the scale and challenges of the development of new capacity at Heathrow airport. It develops further the thinking we set out in our consultations on the regulatory framework to support capacity expansion at Heathrow in June and December 2017.

Responses to CAP1832

Close Economic regulation of Heathrow: working paper on financial resilience and ring fencing, August 2019

Economic regulation of Heathrow Airport Limited from January 2020: notice of proposed licence modifications, August 2019

CAP1825 gives formal notice under section 22(2) of the Civil Aviation Act 2012 (CAA12) of our proposal to modify Heathrow Airport Limited's (HAL) economic licence to:

• extend the current price control by a two year interim period, up to 31 December 2021, taking account of the commercial arrangement between HAL and certain airlines for this period;
• include a new licence condition to promote economy and efficiency; and
• make minor changes to update the price control arrangements, remove obsolete terms and make a change to HAL's regulatory audit requirements to reflect current auditing guidelines.

This statutory consultation follows on from our consultation on interim price control arrangements in February 2019 (see CAP1769) and our consultation on the regulatory framework to support capacity expansion at Heathrow in March 2019 (see CAP1782).

Responses to CAP1825

Close Economic regulation of Heathrow Airport Limited from January 2020: notice of proposed licence modifications, August 2019

(Major Consultation) Economic regulation of capacity expansion at Heathrow: consultation on early costs and regulatory timetable, July 2019

CAP1819 document focuses on the costs of expansion incurred by Heathrow Airport Limited (“HAL”) in advance of receiving a development consent order (“DCO”) under the Planning Act 2008 for the expansion of Heathrow airport. It deals with the new information that has emerged on these costs and notes that there could be significant implications for the wider programme timetable, depending on the levels of this spending and how we propose to treat the expenditure in the regulatory framework.

It also deals with issues relating to the regulatory timetable and updates the guidance we provided previously to HAL on the scope and content of its price control business plans.

Responses to CAP1819

Close (Major Consultation) Economic regulation of capacity expansion at Heathrow: consultation on early costs and regulatory timetable, July 2019

Working paper Heathrow expansion – affordability and financeability update, June 2019

CAP1812 sets out our updated assessment of the affordability and finance ability of the development of new runway capacity at Heathrow. It follows on from the initial assessment of affordability and finance ability included within our consultation in April 2018, updating that assessment to take account of developments in HAL's master planning process for the expansion of Heathrow Airport.

Responses to CAP1812

Close Working paper Heathrow expansion – affordability and financeability update, June 2019

(Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, March 2019

CAP1782 follows on from the consultations that we published on the regulatory framework to support capacity expansion at Heathrow airport in January, June and December 2017 and April and October 2018. It consults further on the development of the regulatory framework and includes:

  • our proposed approach to taking into account the finance ability of Heathrow Airport Limited's (HAL's) activities over the period of capacity expansion
  • our latest thinking on the development of capital efficiency incentives;
  • the proposed next steps for introducing a new licence condition to further promote economy and efficiency on the part of HAL; and
  • further thinking on the issues that may be raised by alternative arrangements for delivering new capacity.

Consultancy studies published alongside this consultation

CAP1782A, Arcadis high-level assessment of the Arora scheme proposal, by Arcadis, March 2019

CAP1782B, Possible ways of implementing ex-ante efficiency incentives for Heathrow's capital expediture, by CEPA, April 2019

CAP1782C, report on gearing sharing mechanisms and application to LHR, by EY, April 2019

Responses to CAP1782

Close (Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, March 2019

The Arcadis report on HAL’s reflection of consumer interests in developing its expansion masterplan, March 2019

We asked Arcadis to carry out an assessment of how Heathrow Airport Limited (HAL) had reflected the consumer interest in developing its expansion masterplan. This was an opportunity to gather information on HAL's master planning process, as well as evidence of how HAL was considering consumer views.

Close The Arcadis report on HAL’s reflection of consumer interests in developing its expansion masterplan, March 2019

Economic regulation at Heathrow from January 2020: proposals for the interim H7 price control, February 2019

The CAA is consulting on the interim arrangement to apply after the end of the Q6 price control for Heathrow Airport Ltd.

CAP1769 seeks views from stakeholders on the commercial arrangements which are proposed to put in place and whether they are in the interests of consumers. The consultation also outlines proposed changes to the Heathrow licence.

The report follows on from our recent consultations CAP1610 and CAP1658.

  • CAP1769, Economic regulation at Heathrow from January 2020: Interim H7 price control proposals
  • CAP1769A, review of Heathrow Airport Limited's (HAL's) initial business plan submission for the Heathrow interim H7 price control (iH7), by CEPA, February 2019

Responses to CAP1769

Close Economic regulation at Heathrow from January 2020: proposals for the interim H7 price control, February 2019

The Arcadis Report on HAL’s Procurement Strategy, February 2019

We asked Arcadis to carry out an initial assessment of Heathrow Airport Limited's (HAL's) procurement strategy for capacity expansion at Heathrow airport. This was primarily an information gathering exercise but presented Arcadis with the opportunity to comment on the appropriateness of HAL's procurement strategy and activities.

Close The Arcadis Report on HAL’s Procurement Strategy, February 2019

Category B Costs for 2016 and 2017: Independent Planning Cost Review and CAA Consultation, January 2019

We have published a review of the planning costs incurred by Heathrow Airport Limited (HAL) as part of its bid to build a third runway.

  • CAP1750 Independent planning cost review Heathrow Expansion Programme Covering the period 2016 and 2017 - January 2019
  • CAP1751 Independent planning cost review Heathrow Expansion Programme Covering the period 2016 and 2017 Supplementary report - January 2019

This independent review carried out by PwC is intended to increase transparency and allow interested parties to comment on the process so far. The review also looks at the level of efficiency associated with the planning costs.

Consultation document

This short consultation document sets out our initial views on the planning costs incurred by HAL during the period of the review.

  • CAP1752 CAA Consultation document: Independent Planning Cost Review on costs relating to the Heathrow Expansion Programme covering the period 2016 and 2017 - January 2019

Responses to CAP1752

Close Category B Costs for 2016 and 2017: Independent Planning Cost Review and CAA Consultation, January 2019

(Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, October 2018

CAP1722 follows on from the consultations on the regulatory framework to support capacity expansion at Heathrow airport that we published in January, June and December 2017 and April 2018. It consults further on the development of the regulatory framework and includes:

  • an update on our latest thinking in relation to coordinating the regulatory timetable with the overall timetable for the development of capacity expansion;
  • detailed consideration of a possible new licence condition to promote economy and efficiency on the part of Heathrow Airport Limited (“HAL”);
  • details of our approach to addressing the issues that may be raised by alternative mechanisms for delivering new capacity;
  • addresses consultees comments on our surface access policy.

It also complements our letter to the Department for Transport of September 2018 on the progress of the “Enhanced Engagement” process under section 16 of the Civil Aviation Act 1982 reporting on airport-airline engagement.

We have also published an FTI report on scarcity rents at Heathrow Airport (CAP1722b)

Responses to CAP1722

Close (Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, October 2018

Licensing issues raised by potential alternative developers of new capacity at Heathrow Airport, August 2018

We have published this Technical information note in the context of the possibility, raised by stakeholders, that capacity expansion at Heathrow may be developed by more than one party. Alternative means of delivering new capacity (or elements of it) have been suggested by respondents to our recent consultations (CAP1610 and CAP1658). The note also addresses issues raised by the Arora Group and HAL.

Responses to the Technical information note

Close Licensing issues raised by potential alternative developers of new capacity at Heathrow Airport, August 2018

Working paper on the cost of capital and incentives, May 2018

CAP1674 focuses on technical issues relating to the cost of capital and incentives for the next main H7 price control review of HAL.

Close Working paper on the cost of capital and incentives, May 2018

(Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, April 2018

CAP1658 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:

  • updates on the development of our thinking in relation to the overall regulatory framework and our initial and early assessment of the overall affordability and finance ability of capacity expansion;
  • more information on the process we are undertaking to establish the cost of capital for Heathrow Airport Limited (“HAL”) and an explanation of our initial work to integrate our preliminary work on incentives with our approach to assessing the cost of capital and shareholder returns;
  • our decisions in relation to a new interim price control that will facilitate the alignment of the regulatory processes for setting price controls with the wider timetable for capacity expansion and better protect the interests of consumers; and
  • discussion and further consultation on the regulatory treatment of surface access costs.

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.

Responses to CAP1658

Close (Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, April 2018

Recovery of costs associated with obtaining planning permission, April 2018

CAP1651, Guidance on preparation of the annual budget and statement for those costs associated with obtaining planning permission for a new northwest runway, April 2018

CAP1513,Policy Statement, February 2017

CAP1469, Final Proposals, November 2016

Responses to CAP1469

CAP1435, Initial Proposals, July 2016

Responses to CAP1435

CAP1372, Policy Update, February 2016

Close Recovery of costs associated with obtaining planning permission, April 2018

(Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, December 2017

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, finance ability, financial resilience, the regulatory treatment of early construction costs and the further extension of existing Q6 price control.

Responses to CAP1610

Close (Major Consultation) Economic regulation of capacity expansion at Heathrow: policy update and consultation, December 2017

(Major Consultation) Consultation on core elements of regulatory framework, June 2017

CAP1541 follows from our January 2017 consultation CAP1510 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 CAP1383 on Strategic Themes for the review of HAL's charges. The consultation also updates our thinking on the timetable issues discussed in CAP1540, our guidance for HAL in preparing its business plans for the H7 price control review.

Responses to CAP1541

Close (Major Consultation) Consultation on core elements of regulatory framework, June 2017

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