Given the capital intensity of network utilities, the remuneration of both historic and new investments is a major determinant of consumer prices, typically accounting for around two thirds of total costs. In order to derive the annuity required to sustain infrastructure investments over time, the cost of capital and depreciation rules are applied to the Regulatory Asset Base (RAB), a number which captures the value of all past investments in the...
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2004/11/01
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Boletim
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30526
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1
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1
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2010/07/01
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The regulatory challenge of asset valuation: a case study from the Brazilian electricity distribution sector
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asset valuation
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