RP3 UK performance plan – UK final decisions
Exceptional measures for 2022
Decision to modify the price controls for NATS (En Route) Plc's (NERL's) regulated activities under its air traffic services licence for the year 2022, following consultation of CAP2245.
- Exceptional measures for the economic regulation of NATS (En Route) plc: decision on licence modifications (CAP2279) (November 2021
NERL RP3 price control conditions: Exceptional measures for 2022
In October 2021 we consulted on modifications to the price controls for NATS (En Route) Plc's (NERL's) regulated activities under its air traffic services licence for the year 2022. These related mainly to exceptional measures in response to the impact of covid-19 on traffic levels.
- Economic regulation of NATS (En Route) Plc: consultation on licence modifications to implement exceptional measures (CAP2245) (October 2021)
Responses to CAP2245
NERL RP3 price controls decision
Decision on licence modifications to NERL's air traffic services to implement the price controls for the period 2020-2022. The modifications implement the CMA's decision, introduce a new licence condition to establish processes and procedures to coordinate airspace modernisation, modifications to improve the clarity of certain obligations in the licence, and guidance relating to NERL's capital expenditure incentives.
Economic regulation for Reference Period 3 under the Single European Sky (2020-2024)
RP3 UK performance plan - CAA final decisions
The CAA has made its final decisions on the UK RP3 performance plan. These decisions are contained in the documents below. On 10 September 2019, NATS formally advised the CAA that it rejected our decisions in respect of the NERL UK and Oceanic price controls. Consistent with the statutory provisions within the Transport Act, on 19 November 2019 the Civil Aviation Authority referred this to the Competitions and Markets Authority to consider and report in due course.
- Economic regulation of NATS (En Route) Plc consultation on licence modifications and guidance (CAP1967) (September 2020)
Responses to CAP1967
- Reference to the CMA - CMA Final Report (August 2020)
- Reference to the CMA - CMA Final Report appendices (August 2020)
- Reference to the CMA - CMA Final Report glossary (August 2020)
- CAA response to CMA request to extend reference period (May 2020)
- CMA request to extend reference period (May 2020)
- Reference to the CMA - CAA response to CMA Provisional Findings - Appendix A Responding to Covid-19 (April 2020)
- Reference to the CMA - CAA response to CMA Provisional Findings (April 2020)
- Reference to the CMA - notice of variation of reference (February 2020)
- Revised draft Condition 10a - Airspace Modernisation
- Guidance note: NER Licence Condition 10a _ Airspace modernisation
- Reference to the CMA of NERL RP3 price controls: CAA response to NERL's Statement of Case
- CAA letter to CMA re: reference of the NERL RP3 price controls
- CAA reference to the Competition and Markets Authority of the NERL RP3 price controls
- NATS letter to CAA re: RP3 Final Decision Document CAP 1830
- CAA RP3 Decision Statement
- UK RP3 CAA decision document(CAP 1830)
- Appendices to UK RP3 CAA decision document (CAP 1830a)
- UK RP3 CAA Decision Document - RAB Rules Working Paper (CAP 1830b)
- UK RP3 performance plan
- Letter from Paul Smith to Martin Rolfe - Summary of CAA RP3 conclusions (August 2019)
Consultancy reports
- Europe Economics - Comments on NERA/NERL critiques of Europe Economics' WACC analysis (June 2019)
- GAD - Review of further evidence provided by NERL (June 2019)
- Grant Thornton - NATS Financial Model 2018 - Findings from agreed testing procedures, updated for CAA final decision on price controls for Reference Period 3 (August 2019)
- PwC Economics - Estimating the cost of capital for H7 and RP3 - responses to stakeholder views on total market return and debt beta (August 2019)
CAA draft performance plan proposals for consultation
This document sets out for consultation the CAA's proposals for the UK's draft performance plan for Reference Period 3 (2020-2024)
- Draft UK Reference Period 3 Performance Plan proposals (February 2019)
- Appendices to Draft UK Reference Period 3 Performance Plan proposals (February 2019)
- Update on cost of capital for RP3 and H7 (February 2019)
- NERL capital expenditure (capex) and Airspace Modernisation Strategy (AMS) funds governance policy and processes - draft for stakeholder comment (July 2019)
- Horizontal flight efficiency (KEA) target for RP3 (July 2019)
- Explanatory note: draft airspace modernisation condition for NERL licence (June 2019)
- Working note: Capex and Airspace Modernisation Strategy (AMS) funds governance policy development (April 2019)
Consultancy reports supporting the CAA's proposals for the UK's RP3 draft performance plan
- Components of the Cost of Capital for NERL by Europe Economics (February 2019)
- NERL's Cost Allocation and Non-Regulatory Income Forecasts by CEPA (February 2019)
- NATS (En Route) plc SIP: Review of SIP Process by Grant Bremer (February 2019)
- NERL's forward-looking capital programme and expenditure efficiency by Steer Group (February 2019)
- NATS Financial Model 2018 - Findings from agreed testing procedures by Grant Thornton (February 2019)
- H7 Initial WACC response document by PwC (February 2019)
- The trustees of the CAA Pension Scheme wrote a letter to the CAA in January 2019 about a Regulatory Policy Statement on NERL's Pension Costs.
Responses to consultation document
- NERL (response, Appendix E, Appendix F, Appendix G)
- NSL
- IATA (response, Attachment 1, Attachment 2, Attachment 3)
- IAG (response, cost of capital)
- Emirates
- Ryanair
- Virgin
- Heathrow Airport
- Prospect
- PCS (Aviation group)
NERL RP3 Business Plan
RP3 Customer Consultation Working Group
Consultancy Reports
- Updated Weighted Average Cost of Capital for NATS (En-Route) plc at RP3 - report by NERA (September 2018)
- Staff Operating Expenditure for Air Traffic Control - report by NERA (March 2018)
- GAD report
Views on NERL's RP3 Business Plan
- Letter from NERL to CAA regarding NERL RBP3 Initial Business Plan (June 2018)
- Letter from CAA to NERL regarding NERL Initial Business Plan (May 2018)
- IATA letter to CAA on NERL Business Plan (letter, Appendix 1, Appendix 2, Appendix 3, Appendix 4)
- IAG letter to CAA on NERL Business Plan
Expectations for NERL Revised Business Plan
Business Plan Guidance to NERL for RP3
This document sets out guidance to NERL from the CAA in preparing its Business Plan for Reference Period 3 (2020 to 2024).
This consultation document sought views from interested parties on the Business Plan guidance that should shape the CAA's approach to the future economic regulation of NERL in the period from 2020 to 2024.
Responses to Consultation document
- NERL
- IATA
- British Airways
- Virgin
- Prospect ATCOs Branch & ATSS Branch
- PCS
- CAA Pension Scheme
- FAS Deployment Steering Group
- Aviation Communities Forum and Stop Stansted Expansion
Strategic themes for future regulation of NERL
This discussion documents ought stakeholder views on the CAA's proposed strategic themes for the future regulation of NERL, in order to inform the development of the CAA's approach to the regulation of NERL from 2020.
Responses to discussion document:
Modifications to Condition 2, introducing a requirement to develop a resilience plan
Responses to our consultation (CAP 1639):
- NERL
- British Airways
- Colin Hume, AOC Consultant
- Prospect ATCO's branch
- Guild of Air Traffic Control Officers
July 2020 - NERL response to resilience plan assessment
June 2020 - resilience plan assessment - summary report
May 2020 - CAA approval of NERL resilience plan
Advice to the Secretary of State for Transport on licence duration
Advice to the Secretary of State for Transport on extending the length of the notice provisions for termination in the Air Traffic Services licence.
NERL capital investment
Response to stakeholders on programmes and projects for engagement incentive August 2021
Letter to stakeholders on programmes and projects for engagement incentive June 2021
Responses
- SIP22 Quarter 1 Update Independent Reviewer Report (June 2022)
- SIP22 Independent Reviewer Report (February 2022)
- SIP21 Quarter 3 Update Independent Reviewer Report (November 2021)
- SIP21 Interim Independent Reviewer Report (August 2021)
- SIP21 Addendum And Quarter 1 Update (May 2021)
- SIP21 Independent Reviewer Report (March 2021)
- Guidance on NERL's capital expenditure engagement incentive (December 2020)
- SIP20 Independent Reviewer Report (March 2020)
- SIP19 Interim Independent Reviewer Report (July 2019)
- Letter from CAA to NERL about SIP19 (May 2019)
- Letter from CAA to NERL about SIP19 (March 2019)
- SIP19 Independent Review Report (March 2019)
- Letter from CAA to NATS about interim SIP18 (October 2018)
- SIP18 Interim Independent Review Report (July 2018)
- Letter from CAA to NATS about SIP18 (March 2018)
- SIP18 Independent Review Report (February 2018)
- Letter from CAA to NATS about interim SIP17 (July 2017)
- Interim SIP17 Independent Reviewer Report (July 2017)
- Letter from CAA to NATS about airspace and technology programmes and SIP17 (May 2017)
- Airspace and technology programmes Independent Reviewer Report (May 2017)
- Letter from CAA to NATS about SIP17 (January 2017)
- SIP17 Independent Reviewer Report (January 2017)
Modifications to Conditions 10 and 10(a) - Reporting on detailed airspace and technology programmes
Condition 10 of NERL's licence requires it to provide a business plan, service and investment plan and periodic reports. After consultation we modified Condition 10 to require NERL to produce detailed technology and airspace plans for RP2 (2015-19) and outline programmes for RP3 (2020-24) as well. At the same time we removed the requirement for it to produce plans on raising the UK transition altitude (TA) and the implementation of the London Airspace Modernisation Programme (LAMP). Our consultation documents, as well as previous documents relating to Conditions 10 and 10(a) are below:
- CAP 1418 - Decision on modifications to NATS (En Route) plc licence in respect of certain planning and reporting requirements under Conditions 10 and 10a(June 2016)
- CAP 1405 - Proposal to modify NATS (En Route) plc licence in respect of certain planning and reporting requirements under Conditions 10 and 10a: Notice under section 11(2) of the Transport Act 2000 (May 2016)
- Responses to CAP 1405:
- CAP 1362 - Decision on modification to NATS (En Route) plc licence in respect of reporting of certain plans under Condition 10a (December 2015)
- CAP 1352 - Proposal to modify NATS (En Route) plc licence in respect of reporting of certain plans under Condition 10a: Notice under section 11(2) of the Transport Act 2000 (November 2015) See the response from NERL.
Advice to the Secretary of State for Transport on licence duration
Advice to the Secretary of State for Transport on extending the length of the notice provisions for termination in the Air Traffic Services licence.
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