On 13 July 2022, ANACOM approved a draft decision on the capital rate of MEO - Serviços de Comunicações e Multimédia (MEO), applicable to financial year 2022.
In this regard, on 6 November 2019, the European Commission published Commission Notice on the calculation of the cost of capital for legacy infrastructure in the context of the Commission’s review of national notifications in the EU electronic communications sectorhttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52019XC1106%2801%29, with a view to harmonizing calculations of cost of capital rates for regulatory purposes in the community and for the electronic communications sector. When reviewing notifications made by national regulatory authorities on the cost of capital rate for regulatory purposes, the Commission states that, as from 1 July 2020, it will follow the approaches proposed for calculating the cost of capital rate set out in this communication.
In this respect, the Body of European Regulators for Electronic Communications (BEREC) was invited by the Commission to estimate the parameters of the weighted average cost of capital (WACC) on an annual basis in accordance with the approach described in the European Commission communication. On 14 June 2022, BEREC published the report "BEREC Report on WACC parameter calculations according to the European Commission’s WACC Notice (WACC parameters Report 2022)https://www.berec.europa.eu/en/document-categories/berec/reports/berec-report-on-wacc-parameter-calculations-according-to-the-european-commissions-wacc-notice-wacc-parameters-report-2022”.
Based on the above and in line with the approach followed in previous years, ANACOM considers that, in the context of the 2022 results of MEO's analytical accounting system, a cost of capital rate of 4.6896% should be applied.
It was decided to submit this draft decision to a prior hearing of interested parties and to the general consultation procedure, granting interested parties a period of 20 working days under both procedures in which to comment. As such comments in response to the consultation should be submitted in writing and in Portuguese no later than 12 August 2022. Comments should be sent by email to ccapital.meo2022@anacom.ptmailto:ccapital.meo2022@anacom.pt1
Once the consultation process has been concluded, the contributions received will be made public. Therefore, for the purposes of publication on this website, interested parties should also submit a non-confidential version of their responses excluding any items considered confidential.
1 Each email may contain one or more files up to a total 10 megabytes, and may, if necessary, split comments between two or more emails.
Consult:
- MEO's cost of capital rate applicable to financial year 2022 https://www.anacom.pt/render.jsp?contentId=1726788
- Consultation on the cost of capital rate of MEO applicable to financial year 2022 https://www.anacom.pt/render.jsp?contentId=1726805
