Specified activities, rents and regulatory accounts
Following a recommendation in the 1991 MMC report, the CAA requires Heathrow Airport Limited to publish costs and revenues for certain activities, known as specified activities, including Check-in desk, baggage systems, staff car parking, staff ID cards, fixed electrical ground power, airside licenses, heating and utility services, and facilities for bus and coach operators.
Further detail on specified activities and the relevant reports can be found at: heathrowairport.com/nrc
Heathrow is required to prepare regulatory accounts by the CAA as specified in License Condition E1. The primary purpose of the regulatory accounts is to serve the purpose of regulation by providing a means of comparing the airport’s financial performance over the price control decision period with that on which the setting of price caps was predicted. It also provides a starting valuation for the next quinquennium.
In Q6 the CAA has decided to align the regulatory year end to 31 December. This means the first year of Q6 will be a nine month period from 1 April 2014 to 31 December 2014 and subsequent years will be twelve months to 31st December.