On 21 October 2021, ANACOM approved a draft decision on the cost of capital rate of MEO - Serviços de Comunicações and Multimedia (MEO), applicable to financial year 2021.
In this regard, it is important to consider that, on 6 November 2019, the European Commission (EC) published Commission Notice on the calculation of the cost of capital for legacy infrastructure in the context of the Commission’s review of national notifications in the EU electronic communications sectorhttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52019XC1106%2801%29, with a view to promoting harmonisation of the cost of capital rate calculations for regulatory purposes in the community and for the electronic communications sector. When reviewing notifications made by national regulatory authorities (NRA) regarding the cost of capital rate for regulatory purposes, the Commission states that, from 1 July 2020, it will follow the approaches proposed for calculating the cost of capital rates set out in this communication.
In this respect, the Body of European Regulators for Electronic Communications (BEREC), which was invited by the Commission to annually estimate the parameters of the weighted average cost of capital (WACC) on an annual basis, in accordance with the approach described in the Commission communication, published the BEREC Report on WACC parameter calculations according to the European Commission's WACC Notice of 6th November 2019 (WACC parameters Report 2021)https://berec.europa.eu/eng/document_register/subject_matter/berec/reports/9977-berec-report-on-wacc-parameter-calculations-according-to-the-european-commissions-wacc-notice-of-6-november-2019. In this report, which BEREC published on its website on 15 June 2021, it is assumed that the NRA will take into account the values of these parameters in determining the WACC.
As such, based on the above and given that this was the methodology adopted by ANACOM in 2020 in the context of the 2021 results of MEO's analytical accounting system, the cost of capital rate applicable to financial year 2021 should be 6.2627%.
It was decided to submit this draft decision to a prior hearing of interested parties and to the general consultation procedure, granting interested parties a period of 20 working days under both procedures in which to comment. As such, comments are to be received no later than 23 November 2021; comments in writing and in Portuguese should be sent by e-mail to ccapital.meo2021@anacom.ptmailto:ccapital.meo2021@anacom.pt1.
Once the consultation process has been concluded, the contributions received will be made public. Therefore, for the purposes of publication on this website, interested parties should also submit a non-confidential version of their responses excluding items considered confidential.
1 Each email may contain one or more files up to a total 20 MiB. If necessary, comments may be split between two or more emails.
Consult:
- MEO's cost of capital rate applicable to financial year 2021 https://www.anacom.pt/render.jsp?contentId=1709756
- Consultation on the cost of capital rate of MEO applicable to financial year 2021 https://www.anacom.pt/render.jsp?contentId=1709916
