Cost of Debt

  • Project Overview

When setting the allowable cost of debt for regulated firms, we 'benchmark' these costs, referencing firms in the same, or related, industries with comparable risk.

The QCA has reviewed its cost of debt estimation methodology.  In addition to establishing the appropriate data sources and method for measuring the benchmark cost of debt estimate at a point in time, the QCA has also reviewed the theoretical framework for estimating the regulatory cost of debt.

 

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