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This consultation summarises our broad approach to the remainder of the Heathrow Airport Limited (HAL) H7 price control review programme. It deals with the following main issues:

• an update on timetable and recent developments (with our response to HAL’s request for a Covid-19 Related RAB adjustment being set out in a document published alongside this one);
• an overview of our proposed approach to the form of regulation for HAL, including our intention to set a 5-year price control;
• our assessment of HAL’s revised business plan (RBP) including our proposed approach to developing projections for each of the key price control “building blocks” that will inform our Initial Proposals due to be published this summer; and
• an update on our approach to introducing traffic or revenue risk sharing, developing stronger capital efficiency incentives, moving towards outcome based regulation (“OBR”), and our approach to assessing HAL’s financeability and the affordability of its charges.

Appendices to support this document have been published separately: Appendices to Economic regulation of Heathrow Airport Limited: Consultation on the Way Forward (CAP2139A).

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