Draft Method Statement and Business Plan Guidance for H8, November 2024
In this document, we set out for consultation:
- a draft method statement for H8, which sets out our proposed approach to setting price controls for H8, taking account of H7 lessons learnt;
- an outline of a possible new incentive on HAL to provide high quality business plan information, in response to issues identified from the H7 lessons learnt; and
- draft business planning guidance for HAL as it develops its H8 plan.
We have also published a review of the methodology for determining the weighted average cost of capital in the next price control period.
Response deadline extension
Following a request from the airline community we have extended the response deadline for this consultation.
- For responses to the consultation on the draft method statement we are now requesting responses by 17:00 on 13 December 2024.
- For responses on the cost of capital, the FTI report and the specific questions identified in chapter 2 on the cost of capital, we now requesting responses by 17:00 on 15 January 2025.
Guidance on constructive engagement
Following the publication of our lessons learnt review findings in August 2024, we are now setting out draft guidance, for consultation, on the Constructive Engagement process for the next Heathrow price control review. We welcome views from stakeholders on this draft guidance.
Responses
Setting future price controls – review of approach
Review of approach findings
Consistent with best practice and the recommendations of Public Body Review of the CAA, we have reviewed our approach to setting price controls to identify opportunities to improve the efficiency, timeliness and effectiveness of the processes and outcomes. These documents set out the findings from our review of our approach to setting price controls (including the lessons learnt from H7 and NR23), which will inform our overall approach to future price controls.
Setting future price controls – lessons learnt from the review of approach (CAP3000)
Appendix C: Setting future price controls – lessons learnt from the review of approach (CAP3000a)
External reports
International approaches to airport and air traffic control regulation, MKmetric
Future regulatory approach – cost assessment, Grant Thornton
Consultation on review of approach
We are carrying out a review of our approach to setting price controls (including the lessons learnt from H7 and NR23) to inform our overall approach to future price controls. CAP2618 sets out our initial views on the scope of this lessons learnt review and on the key issues we should consider for the next price control reviews for HAL and NERL. We welcome views from stakeholders on these issues.
Responses
- Aer Lingus
- Airlines for America
- Airports Council International (ACI) Europe
- Arora
- British Airways
- easyJet
-
Heathrow Airport and community
- NATS (En Route) plc (NERL)
- Pandox
- Prospect
- Virgin Atlantic
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