The weighted average cost of capital (WACC) is expressed as a percentage and means a weighted average of the cost of debt and the cost of equity as calculated under section 6.64 of the Electricity Networks Access Code (Access Code).

On 25 February 2005, the Authority published a notice with respect to a determination on the preferred WACC methodology to apply to networks that are covered under the Access Code.

The determination has effect for five years, commencing 25 February 2005 and is effective for the first access arrangement submitted for Western Power’s South West interconnected network (SWIN).

The Authority must have regard to this determination when assessing Western Power’s proposed access arrangement. If another network becomes covered under the Access Code, while this determination is in effect, this determination will also apply to that network, unless the determination is revoked or amended.