REVIEW OF COST OF CAPITAL RANGES FOR NEW ASSETS FOR OFGEM’S NETWORKS DIVISION

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Client Ofgem
Dates Jan - 2018
Sector(s)Energy
Service(s)Regulation & Competition
CEPA was appointed by Ofgem to provide support in reviewing the component parts of the cost of capital estimates used across its Networks Division. The report focuses on cost of capital estimates pertaining to three categories of assets, collectively referred to as new asset investments:
  • Offshore Transmission Operator (OFTO) assets;
  • interconnectors; and
  • new, separable and high value onshore electricity transmission projects proceeding under the proposed Competition Proxy model, with particular reference to the Hinkley-Seabank (HSB) connection.