The prior adoption of a clear methodology and the resulting definition, a priori, of the rate of the cost of capital for the years 2009 - 2011 promotes regulatory predictability and transparency in the markets. As such it is deemed appropriate to adopt a fixed rate for the rate of cost of capital for the three-year period of 2009-2011 (See Table 12).
|
Parameters |
Rate |
|
Risk-free interest rate |
4.47% |
|
Debt premium |
1.23% |
|
Beta |
0.85 |
|
Risk premium |
5.86% |
|
Gearing |
36.20% |
|
Tax rate |
26.50% |
|
Cost of equity |
9.47% |
|
Pre-tax CMPC |
10.28% |
Source: ICP-ANACOM Calculation
Since the rate of the cost of capital is determined at the end of 2009, it is considered that there should be a transition period which will allow PTC to adjust its operations to the rate of cost of capital resulting from this methodological change. In this respect, a glide path is established, having as its starting point the cost of capital rate presented by PTC in its AAS results for the 2008 financial year (Tx 08 - 13.24%).
It is important to note that the results of the 2008 AAS have not been audited. However, despite the conclusions that may result from the audit, the premises now defined and the values established for the transitional period should be maintained, since the value in question (Tx 08) only reflects an approximation to the initial point and has no effect on the determination of the point of arrival.
In light of the above, a linear and annual 1.0% decrement rate is considered for the value of the cost of capital rate (rounded to one decimal place for the sake of simplicity) between 2009 and 2011, until the value of 10.3%, as defined by ICP-ANACOM, is achieved in 2011. This results in the values set out in Table 13.
|
1st year - 2009 |
Tx 08 – (Tx 08 – Tx 09/11)*0,33 |
12.3% |
|
2nd year - 2010 |
Tx 1st year – (Tx 08 – Tx 09/11)*0.33 |
11.3% |
|
3rd year - 2011 |
Tx 2nd year – (Tx 08 – Tx 09/11)*0.33 |
10.3% |
Source: ICP-ANACOM calculation
Tx 09/11 – corresponds to rate set out in table 12
However, in the event that, during the period in question, any extraordinary situation occurs which has a significant impact on the validity of the assumptions used, the parameters defined will be reviewed. This review, provided it is properly justified, can be triggered on the initiative of ICP-ANACOM or PTC.
In this regard, ICP-ANACOM undertook the assessment of the relevant parameters for determining the cost of capital rate, dividing them into two distinct blocks: (i) parameters which depend on the macroeconomic conditions in the country, and are therefore external to the company, including the risk-free interest rate, the tax rate and risk premium, and (ii) parameters related to the company itself, in particular, Beta, gearing and debt premium.
It is considered that these latter parameters are not subject to revision during the three-year period of 2009-2011, since the benchmark used for their calculation is broad enough to deflect possible changes and to accommodate a degree of volatility, whereas they will certainly be reviewed when the rate is defined for the following three-year period. Regarding the former parameters, the situation is different and needs some attention in the sense that its variation is immediate and direct because it depends on fiscal policy and the country's macroeconomic environment, whereby it is completely external to the company and, as such, can be revised.
It should be noted that the review mechanism can be triggered until the end of the first quarter of the year following the year in question, whereas the effects of any calculated adjustments should have bearing on the respective financial year, prior to the presentation of the annual results of the AAS.
ICP-ANACOM deems significant, a deviation exceeding 0.5 percentage points in the cost of capital rate of PTC, defined in the present Decision, whereby any change in the value of the cost of capital rate to be applied in the three-year period of 2009-2011 will be subject to determination of this Authority and will be subject to the prior-hearing of interested parties.
