Advice on Alternative Approaches to Setting the Cost of Debt at PR19

This work will be used by both Ofwat and the CAA The primary purpose of this work will be to undertake a fundamental review of the potential approaches to setting the cost of debt and advise on the principles we should consider when determining the most appropriate approach. The work should provide supporting evidence to assist our decision on the most appropriate approach to setting the cost of debt at PR19 and H7, while reflecting the need to ensure that at its heart the selected approach delivers the best outcome for customers. The work will draw on market evidence and include an assessment of the relative merits for customers and investors of adopting alternative approaches to set…

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