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

This working paper 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.