Tsos rail at tougher cap

摘要

Regulator BNA's proposal for a lower cap on power and gas network earnings for regulatory periods beginning January 2014 and January 2013 respectively has elicited a howl of complaint from operators. The calculatory interest rate on equity, an input value for setting the allowed network earnings level, works out at 8.2% for new network facilities before corporation tax for the second regulatory periods, compared with 9.29% for the first regulatory period, the BNA said September 7. The reduction "is a result of the development of the general interest rate but also takes into account that compared with very volatile market developments in recent times, the network operation business has generated very stable and constant returns," it said.