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NERL (NR23) Price Control Provisional Decisions

CAP2553 sets out our Provisional Decisions for the UK en route, London Approach and Oceanic price controls that will apply for the five calendar years from 1 January 2023 to 31 December 2027 (the NR23 period).

CAP2553 also sets out the statutory consultation on the proposed modifications to NERL’s licence to implement the NR23 price controls. It also contains our Decisions on non-NERL costs for the NR23 period.

Reports by external consultants

Responses

Close NERL (NR23) Price Control Provisional Decisions

NERL (NR23) Price Control Initial Proposals

CAP2394 sets out for consultation our Initial Proposals for the UK en route, London Approach and Oceanic price controls that will apply for the five calendar years from 1 January 2023 to 31 December 2027 (the NR23 period).

Reports by external consultants

Responses

Close NERL (NR23) Price Control Initial Proposals

NERL price controls review 2023 to 2027 (NR23)

In response to the CMA's final report on RP3 and the impact of COVID-19, we are reviewing NERL's regulatory arrangements. The review - NR23 - will take both a backward look at NERL's determination for RP3 in light of the impact of COVID-19, and establish new price controls for NERL's regulated activities for the period 2023 to 2027 inclusive. NR23 encompasses activities previously sometimes referred to as RP3 interim arrangements (RP3I).

Updated timetable for NR23 price control review

Following review of the NR23 timetable, we consider it is appropriate to delay the publication of the CAA’s Initial Proposals to provide sufficient time to consider material policy issues and to ensure further robust engagement with NERL and stakeholders. Details of the updated timetable are set out in the below letter.

Invitation to stakeholders - February 2022

On 7 February 2022, NERL published its business plan for the NR23 price control review. As noted during the customer engagement process in autumn 2021, we have invited stakeholder views on NERL’s business plan to help inform how we develop the CAA’s Initial Proposals.

Stakeholders provided the following responses to the CAA:

Update - December 2021

CAP2306 sets out our request for further information and detail in relation to the operating expenditure, capital expenditure and non-regulatory revenue building blocks to be included in NERL's NR23 business plan, which we expect to be submitted by 7 February 2022.

Update - November 2021

The document covers the following topics:

  • stakeholders' responses to the June 2021 Update (CAP2160), in relation to the 2020-2022 reconciliation review, and our views on these responses;
  • in the appendix, the request for information to NERL, which provides a high-level overview of the information we require to carry out the reconciliation review; and
  • a more detailed description of the evidence that is being sought from NERL as part of its submission for each building block.

Update - June 2021

CAP2160 provides further details in relation to the next NERL price control review (NR23), including:

  • our current view on the timetable;
  • guidance for NERL in developing its business plan and the customer engagement process with airspace users; and
  • the reconciliation review for NERL's revenues for 2020 to 2022.

Responses to CAP2160

Update - August 2021

CAA letter to NERL: further guidance on the approach to the next price control review, NR23

Update - March 2021

Responses to CAP2119

Approach to next price control review - December 2020

Responses to CAP1994

Close NERL price controls review 2023 to 2027 (NR23)

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