CAA begins Heathrow price setting control process
Above: Heathrow Airport.
Courtesy CAA
The regulator's review - known as H8 - will set how much HAL can charge airlines for using the airport from 2027 to 2031.
H8 will also set incentives for Heathrow to improve its service quality and environmental performance and make the necessary investment in the airport, in the interests of consumers.
Signalling the start of the process, the UK Civil Aviation Authority has published a draft method statement and business planning guidance for consultation.
This sets out the approach the regulator will take to the price control review and the information HAL will need to provide when it submits its business plan in 2025.
This includes an initial view based on advice to the UK Civil Aviation Authority on the cost of capital for the H8 period. The cost of capital is an important component in setting the price control for HAL. It represents the return that investors require to finance ongoing investment at Heathrow.
The draft method statement and business planning guidance is open for consultation, with stakeholders invited to provide their views by 6th December 2024. Stakeholders are invited to provide their views on the initial view on the cost of capital by 3rd January 2025.
For further information visit: Consultations | Civil Aviation Authority
