ED2 Weighted average cost of capital (WACC) model
Reports, plans and updates
- Publication date
- Industry sector
- Distribution Network
- Licence type
- Electricity Distribution Licence
The RIIO-2 Price Control includes an allowance for the licensee’s estimated Weighted average cost of capital (WACC). This is calculated under the provisions of the ED2 Price Control Financial Handbook.
Details of the model
We use a model to calculate the cost of debt and risk-free rate values which are inputs into the ED2 Price Control Financial Model. We update these values annually as part of the Annual Iteration Process. This re-calculates allowed revenue values under the ED2 Price Control.
We have published the model under section 4.31 of the ED2 Price Control Financial Handbook.