Weighted Average Cost of Capital (WACC)

In the regulated industries in the Netherlands, the ACM has a role in tariff setting. For this, the ACM needs to determine the reasonable rate of return to set tariffs for incumbents in these markets. The ACM sets this reasonable rate by calculating the WACC. Since the WACC is an important element when setting tariffs, as well as an element of specific and varied regulatory methods, the ACM regularly needs advice to determine (parameters of) the WACC. The ACM intends to enter into Framework Agreements with multiple expert parties for the execution of Assignments aimed at determining the components/parameters of the WACC and related (advising) services. By concluding these new Framework Agreements, the ACM seeks to build an effective collaboration with multiple Contractors who combine professionalism, expertise, and quality to produce high-quality WACC analyses.