# Commission Decision (EU) 2015/658 of 8 October 2014 on the aid measure SA.34947 (2013/C) (ex 2013/N) which the United Kingdom is planning to implement for support to the Hinkley Point C nuclear power station (notified under document C(2014) 7142) (Only the English version is authentic) (Text with EEA relevance), Division

Extent: E+W+S+N.I.

Table 11
Selected regulatory allowed returns calculations
Final Proposals for National Grid Electricity Distribution and National Grid Gas
Ofwat Future water and sewerage charges 2010-2015: Final determinations
Ofwat: Setting price controls for 2015-20 — risk and reward guidance
Source: Presentation of EDF Energy to Commission officials of 15 July 2014, slide ‘Comparison of HPC with UK regulated utilities’.
Electricity Transmission (Ofgem)
Ofwat — PR09
Ofwat — PR 14 (not finalised)
Note
Period
2013-21
2010-15
2015-20
Real
Levered cost of equity (post-tax)
7,00 per cent
7,10 per cent
5,65 per cent
Cost of debt (pre-tax real)
2,92 per cent
3,60 per cent
2,75 per cent
Notional gearing
60,0 per cent
57,5 per cent
62,5 per cent
Vanilla WACC
4,55 per cent
5,10 per cent
3,85 per cent
Inflation assumption
3,50 per cent
3,50 per cent
3,50 per cent
Allowed Nominal Costs/Returns (geometric calc)
Levered cost of equity
10,7 per cent
10,8 per cent
9,3 per cent
Cost of debt (pre-tax)
6,5 per cent
7,2 per cent
6,3 per cent
Vanilla WACC*
8,2 per cent
8,8 per cent
7,5 per cent
Nominal (arithmetic calc)
Levered cost of equity*
10,5 per cent
10,6 per cent
9,2 per cent
Cost of debt (pre-tax)*
6,4 per cent
7,1 per cent
6,3 per cent
Vanilla WACC
8,1 per cent
8,6 per cent
7,3 per cent
https://www.ofgem.gov.uk/ofgem-publications/53602/4riiot1fpfinancedec12.pdf
http://www.ofwat.gov.uk/pricereview/pr14/gud_tec20140127riskreward.pdf
http://www.ofwat.gov.uk/pricereview/pr09phase3/det_pr09_finalfull.pdf

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Source: https://www.legislation.gov.uk/eudn/2015/658/annex/A/division/9 (the official version)
Page: https://openlegislation.uk/eu-decision-2015-658/annex-A/division-9
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.