Ofgem invitation (4 pages, PDF) to seminars on Friday 7 November 2008 (afternoon) in London and on Friday 28 November 2008 in Glasgow about its project to review the "RPI-X" approach to network price controls.

Ofwat report (42 pages, PDF) on the expenditure and pricing proposals put forward by water and sewerage undertakers in England and Wales in their draft business plans for the Ofwat price control review 2009.

Companies are seeking above-inflation price increases, in part on the basis of plans for greater levels of capital maintenance expenditure and of capital enhancement expenditure to increase capacity.

London Underground PPP Arbiter guidance (75 pages, PDF) on its current view of the expenditure requirements of the infrastructure company Tube Lines over its second price control period (2010-2017). London Underground had asked for this guidance.

CRE consultation (21 pages in French, PDF) on electricity distribution (ERDF) and transmission (RTE) price controls from 1 January 2009. CRE has also released a draft (24 pages in French, PDF) of the price control rules that would be imposed as a result of its proposals.

The companies were seeking substantial tariff increases — up to 20 per cent (comparing a 2009-2012 average to a 2006-2007 average) according to CRE. The CRE's proposals would lead to increases of up to 10 per cent (measured on the same basis).

The CRE's proposed allowed return on capital is 7.5 per cent nominal gross of tax, compared to the companies' proposals of 7.75 per cent (RTE, subject to protection against volume risk) and 8 per cent (ERDF).

The CRE proposes to accept ERDF's plans for additional spending on quality of supply.

Responses by Monday 15 September 2008. CRE is planning to make recommendations to ministers (who make the decision) in October 2008.

Competition Commission consultation (several PDF files, including a 290-page main report and a 10-page notice of possible remedies) on its inquiry into BAA's ownership of airports.

The proposals include requiring BAA to sell two London airports and one Scottish airport.

On regulation, possible recommendations to the Government include changing the law to introducing a licensing system, enabling conditions such as financial adequacy and ring-fencing to be imposed and enforced by the CAA. The possibility of a special administration regime similar to those in place for water, rail and energy networks is mentioned (but little is said about it).

There is a recommendation to extend CAA's competition law enforcement role to airports. Specific competition law issues e.g. relating to taxi, bus, car hire and parking are not addressed:

8.7. These concerns arise irrespective of common ownership ... They are not in our view appropriately addressed under the terms of this inquiry.

Responses by Wednesday 17 September 2008.

Comment. BAA's recent refinancing appears predicated on continued common ownership of its three London airports, and of Edinburgh and Glasgow airports. There could be substantial costs involved in unwinding covenants in connection with the divestment or financial ring-fencing of individual airports. If so, would these costs be taken into account by the Competition Commission when deciding whether to require divestment or recommend ring-fencing? If it was a merger inquiry, the answer would be no — divestment costs attributable to integration before a merger clearance are disregarded according to paragraph 4.10 of the guidelines. But the Competition Commission's guidelines on market investigations do not address the corresponding issue when a remedy is made more expensive by actions taken a few days before the notice of possible remedies. Franck

Ofgem consultation (40 pages, PDF) on its approach to pension costs in setting electricity distribution price controls from 2010.

Responses by Friday 26 September 2008.

Competition Commission consultation (9 pages, PDF) on possible remedies that it is considering as part of its market investigation into the leasing of rolling stock to passenger rail franchises in Great Britain.

The reasons for suggesting remedies are outlined in a summary (17 pages, PDF) of the provisional findings report, which is due to be published in full on Friday 8 August 2008.

The suggested remedies are mainly recommendations to Government, including in relation to franchise contracts (longer, less micromanagement), franchise award criteria, pairing of franchises to be coterminous, and more Government financial guarantees.

The only proposed remedy presented as a possible obligation on leasing companies would be a duty to offer short-term leases at the same price as longer-term leases. Even for that remedy, the notice states that this might be implemented by a recommendation to Government to use its call options to secure short-term leases for new franchisees:

42. We are considering a remedy requiring ROSCOs to make available short-term leases at no premium over the current lease rental price or a low premium, for example limited to a demonstrable increment in transaction costs. ... Such measures could be implemented through a price control mechanism specified in an Order. An alternative means to achieve this might be to alter the circumstances in which the DfT may use its ‘call options’ by amending the direct agreements between the ROSCOs and the Government. This will involve a further recommendation to the DfT.

On the possibility of a price control, the notice says:

48. In view of the scope of the detriment that we have identified, the practical difficulties of creating and maintaining a control and the possibility that new distortions would be introduced into this market, we are strongly minded not to pursue a price control remedy but would welcome views, including those to the contrary.

Responses by Friday 12 September 2008.

CAA submission (35 pages, PDF) to the Government on the system of economic regulation of airports in the UK.

The document includes:

3.15 In summary, the CAA considers that airports can, and do, compete, and that there is no a priori reason why [South East England] airports could not also compete, albeit that this competition will reflect the particular circumstances of this market, including the availability of airspace and suitable land for airport expansion. However, in advance of the outcome of the [Competition Commission's] market investigation, it would be premature to assess whether — as a result — it would be possible for reliance to be placed on competition and competition law, rather than on economic regulation.