MCC was involved with the early preparations for the RC2 price control, which were due to take effect from 1st January 2023. This involved a review of the multi-year, incentive-based price controls that have been applied to the water, wastewater, recycled water and electricity companies in the Emirate of Abu Dhabi (AADC, ADDC, ADSSC, TRANSCO, and EWEC). ​

MCC reviewed the price control model used in Abu Dhabi to set the Maximum Allowed Revenue (MAR) for electricity and water monopoly network services. Unlike most price controls in the UK, this involved a fixed and variable term for allowable revenues: which was designed to incentivize the growth of electricity and water services in the region.​

MCC’s role was to provide analysis of WACC calculations from previous price controls (RC1), and to guide WACC developments for the upcoming price control (RC2). MCC used both regulators’ benchmarks and bottom-up analysis to generate an anticipated WACC allowance.​

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