On 30 August 2022, ANACOM approved the draft final decision for notification to the European Commission, the Body of European Regulators for Electronic Communications and the national regulatory authorities of other EU Member States, regarding the rate of cost of capital MEO -Serviços de Comunicações e Multimédia (MEO), applicable to financial year 2022.
In the context of regulating the electronic communications market, the cost of capital rate is determined in order to remunerate the investments of regulated companies, as well as:
- ensure the right incentives for investment;
- guarantee that there are no distortions in the markets as a result of discriminatory and anti-competitive practices;
- eliminate barriers to entry for new competitors;
- protect consumers from excessive pricing.
Based on the methodology followed and on the calculation presented and detailed in the draft decision, and in the context of the 2022 results of the analytical accounting system used by MEO, ANACOM determined a cost of capital rate of 4.6896%, below the rate approved for financial year 2021 (6.2627%).
On the same date, ANACOM also approved the report of the prior hearing and the consultation to which the respective draft decision was submitted (draft decision approved on 13 July 2022https://www.anacom.pt/render.jsp?contentId=1726788).
Consult:
- Notification to the European Commission of the draft final decision on MEO's cost of capital rate applicable to financial year 2022 https://www.anacom.pt/render.jsp?contentId=1730004
- Consultation on the cost of capital rate of MEO applicable to financial year 2022 https://www.anacom.pt/render.jsp?contentId=1726805
