On 11 January 2022, ANACOM approved the draft final decision to be notified to the European Commission, the Body of European Regulators for Electronic Communications (BEREC) and the national regulatory authorities of the other Member States of the European Union, on the cost of capital rate of MEO - Serviços de Comunicações e Multimédia (MEO) applicable to financial year 2021.
In the context of regulating the electronic communications market, the cost of capital rate is determined in order to remunerate the investments of regulated companies, as well as:
- ensure the right incentives for investment;
- guarantee that there are no distortions in the markets as a result of discriminatory or anti-competitive practices;
- eliminate barriers to entry for new competitors;
- protect consumers from excessive pricing.
Based on the methodology followed and the calculation presented and detailed in the draft decision and in the context of the 2021 results of MEO's Sistema de Contabilidade Analítica (Analytical Accounting System), ANACOM determined a cost of capital rate of 6.2627%, below the rate approved for financial year 2020 (7.1077%).
On the same date, ANACOM also approved the report of the prior hearing and the consultation to which the respective draft decision was submitted (Draft decision approved on 21 October 2021https://www.anacom.pt/render.jsp?contentId=1709756).
Consult:
- Notification to the European Commission of the draft decision on MEO's cost of capital rate for financial year 2021 https://www.anacom.pt/render.jsp?contentId=1715184
- Consultation on the cost of capital rate of MEO applicable to financial year 2021 https://www.anacom.pt/render.jsp?contentId=1709916
