Prolongation of public discussion on the proposal for a decision determining the new value of WACC
ZAGREB, 11 August 2022 - The Croatian Regulatory Authority for Network Industries (HAKOM) prolonged the public discussion on the decision to determine the new value of the weighted average cost of Capital (WACC). Instead of August the 2nd, the public discussion will be open until September the 2nd and can be accessed through the following link.
WACC is basically the sum of the cost of debt and the cost of capital, calculated as a weighted average according to its percentage in the value of the company. It shall be applied in the calculation of cost-oriented prices of the services of operators declared to be the operators with significant market power in the relevant markets and determining the regulatory obligation to monitor prices, as well as in other cases where operators are obliged to apply the cost-orientation principle under the provisions of the Electronic Communications Act (ZEK) and/or the HAKOM decision.
The WACC calculation shall include the following parameters: risk-free rate (RF), company-specific risk premium (DP), Beta coefficient (β), market risk premium (ERP), debt ratio, and corporate tax rate.
For additional information please contact:
Croatian Regulatory Authority for Network Industries (HAKOM)
- Roberta Frangeša-Mihanovića 9 Street
- 10110 Zagreb, Croatia
- Tel. + 385 (0) 1 700 70 07
- Fax + 385 (0)1 700 70 70
Media inquiries can be submitted online using HAKOM’s official website: www.hakom.hr
HAKOM - Croatian Regulatory Authority for Network Industries – ensures preconditions for a fair market competition, stable growth and environment for innovations in the electronic communications and postal services market. HAKOM protects users’ interests and the possibility of choice among various communications and postal services at affordable prices, defines sustainable competitive conditions for operators and service providers under fair conditions for return on investment, and provides support to economic growth, public services and the quality of life in the Republic of Croatia by using modern technologies. HAKOM’ strategic goals are: to promote regulation of the electronic communications and postal services market, to support growth of investments and innovations in the electronic communications and postal services market, to provide efficient use of limited resources, to accelerate the growth of broadband products and services, to provide affordable offers of communications and postal services, to provide protection and informing of users, to build an efficient and comprehensive information system, to define and implement efficient processes, and to acquire multi-disciplinary expertise in market regulation.