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Upcoming price control H8

Information relating to Heathrow price control review H8.

Next steps

29 May 2026: Open letter on H8 next steps.

Initial proposals

The H8 initial proposals summary document (CAP3232) sets out the context for the H8 review as well as the proposed approach to the main price control building blocks and the resulting level of airport charges.

Section 1 sets out details of our approach to consumer engagement, passenger forecasts and proposals for outcomes based regulation:

  • Chapter 1: Consumer engagement;
  • Chapter 2: Passenger forecasts; and
  • Chapter 3: Outcome based regulation.

Section 2 sets out details of our initial proposals for the main cost and revenue building blocks:

  • Chapter 4: Operating expenditure;
  • Chapter 5: Commercial revenues;
  • Chapter 6: Capital expenditure;
  • Chapter 7: Incentives; and
  • Chapter 8: Other regulated charges.

Section 3 sets out details of our initial proposals for the WACC, financial building blocks and the price cap issues and financeability:

  • Chapter 9: Weighted average cost of capital;
  • Chapter 10: Financial framework; and
  • Chapter 11: Calculating the price cap and financeability,

The appendices documents are published as Appendices A - B, Appendices C - D and Appendices E-L.

Of the appendices:

  • Appendix A sets out a summary of our duties;
  • Appendix B provides a glossary of terms used in these initial proposals;
  • Appendix C sets out the draft licence modifications that we consider would implement these initial proposals; and
  • Appendices D to K provide further information on the main issues set out in these initial proposals.

We have also published supporting documents:

Responses

Method statement and business plan guidance

In this document, we set out:

We are also publishing a letter to industry to update on how the Civil Aviation Authority will take forward work on capacity expansion and the development of a third runway at Heathrow, and the final report from the Independent Reviewer for Round 1 of Constructive Engagement on the H8 price control review.

In CAP3044, 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 (CAP3044a) for determining the weighted average cost of capital in the next price control period.

Responses to CAP3044

Responses to CAP3044A

Constructive engagement

The final report dated August 2025 from the Independent Reporter for Round 2 of Constructive Engagement on the H8 price control review.

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

13 August 2024: Update on timetable and constructive engagement for the next price control reviews for HAL and NERL.

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

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