Cost of capital for ED2 revealed

Ofgem has set the baseline return on equity for investors in electricity distribution networks at 4.4 per cent for the next price control period. The decision comes as Ofgem faces appeals to the CMA from all eight of the gas and transmission networks over their final determinations. It is also ahead of next week’s CMA decision on the water appeals, where the cost of equity was a key point of contention.

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