MEO's cost of capital rate applicable to 2016 financial year

On 25 May 2016, ANACOM approved a draft decision on MEO's cost of capital rate, as applicable to the 2016 financial year, having taken note of the relevant consultancy report prepared by Mazars.

It is deemed important to modify the methodology used for calculating the parameters defined in ANACOM's determination of 5 December 2013https://www.anacom.pt/render.jsp?contentId=1184458, specifically as regards the risk-free interest rate, the debt premium and the risk premium, as well as to review the comparable companies base.

It was decided to refer the draft decision to a prior hearing of interested parties, in accordance with the Código de Procedimento Administrativo (Administrative Proceeding Code) and to the general consultation procedure laid down in article 8 of Lei das Comunicações Eletrónicas (Electronic Communications Law). Under both procedures, interested parties are granted a period of 20 working days in which to comment.