Commerce Commission's WACC announcement

30 October 2014

Auckland Airport has received the Commerce Commission’s draft report on proposed changes to the Weighted Average Cost of Capital (WACC) for the price-controlled, electricity and gas sectors.

Simon Robertson, Auckland Airport’s chief financial officer, says, “This draft Commerce Commission report on WACC does not directly impact Auckland Airport.”

“The Commission is separately considering whether it needs to make any changes to its WACC methodology for airports, and we will continue to work with the Commission during this review process.”

WACC is the cost of raising capital, either through debt or shares. The Commission's WACC methodology is not binding on airports, but is used by the Commission to monitor aeronautical charges. The Commission is reviewing its approach to one part of its WACC methodology following the High Court’s recent merits appeal decision and following feedback from stakeholders.

Ends

For further information please contact:

Simon Lambourne
+64 9 255 9089
+64 27 477 6120
simon.lambourne@aucklandairport.co.nz