Price Regulation A2 Micro. Price Regulation – State of Play Sector / Industry Price caps for wholesale prices? Price caps for retail prices? Length of.

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Presentation transcript:

Price Regulation A2 Micro

Price Regulation – State of Play Sector / Industry Price caps for wholesale prices? Price caps for retail prices? Length of price control period Form of price capping used Water and sewerageNoYesFive yearsRPI + K Telecommunications Yes – caps on mobile termination charges (roaming fees) No On-going – no fixed price capping period Long run incremental cost Electricity Yes – price caps for transmission and distribution No Five years, soon to be eight years RPI-X – soon to be RIIO Gas Yes – transportation and distribution No Five years, soon to be eight years RPI-X – soon to be RIIO Postal ServicesYes – for pre-sort services and prices paid by non-Royal-Mail businesses for access to mail network Yes – prices capped – periodic increases in prices allowed Two-year price freeze after a price review – large rise in stamp prices in 2012 RPI-X for retail postal charges but this price control is set to be abolished