Singapore legislation
Regulation 7A
of Civil Aviation Authority of Singapore (Price Control of Aeronautical Charges) Rules 2009
Regulation 7A
Formula for price or amount
Subregulation 1
For the purposes of rule 7(2)(a), the formula for calculating a price or an amount is Wheretis the year in the regulatory period for which the RYCap is to be determined; RYCap tis the revenue yield cap or aeronautical revenue earned per passenger in the relevant year t; Opexaero tis the operating expenses incurred from the provision of aeronautical services and facilities, including security-related operating expenses not recovered from projected security-related revenue, projected for the relevant year t; Depreciation aero tis the projected depreciation of assets utilised from the provision of aeronautical services and facilities, including the projected depreciation of security-related assets not recovered from projected security-related revenue, in the relevant year t; CoCaero tis the sum of computed pre-tax weighted average cost of capital (WACC) on the average regulated asset base and the computed pre-tax WACC on the average security asset base not recovered from projected security-related revenue, in the relevant year t; H%is the level of contribution applied on the projected non-aeronautical economic profits in the relevant year t; Profit non-aero tis the projected non-aeronautical economic profits in the relevant year t; Adjustment tis the allowable adjustments made, on a net present value-neutral basis, to the projected aeronautical revenue in the relevant year t which may include, but are not limited to, positive or negative adjustments to account for revenue profiling requirements, under-recovery and over-recovery from previous regulatory periods and deviations from capital expenditure forecasts; Volpax tis the projected total passenger movement for the relevant year t.
Subregulation 2
In this rule —
Definition
“average regulated asset base”, in relation to any year, means the average of the starting and ending value of the regulated asset base for the year;
Definition
“average security asset base”, in relation to any year, means the average of the starting value and the ending value of the security asset base for the year;
Definition
“non-aeronautical economic profit” means the operating profit derived from the provision of non-aeronautical services and facilities, net of depreciation and the pre-tax weighted average cost of capital on the average non-regulated asset base;
Definition
“regulated asset base”, in relation to an airport licensee for an airport, means such assets, including working capital and work-in-progress assets, that are utilised by the airport licensee in the provision of aeronautical services and facilities at the airport;
Definition
“security asset base”, in relation to an airport licensee for an airport, means such assets, including working capital and work-in-progress assets, that are utilised by the airport licensee in the provision of security services and facilities at the airport.
Subregulation 3
In computing the average regulated asset base in relation to any year within a regulatory period —
the starting value of the regulated asset base for the next regulatory period shall be equal to its value at the end of the last regulatory period; and
the projected ending value of the regulated asset base of each year in the regulatory period shall be its starting value plus —
projected aeronautical capital expenditure during the year;
projected change in work-in-progress assets; and
projected net changes to net aeronautical working capital, where aeronautical working capital is to be determined by the Authority after consultation with the airport licensee,but less projected depreciation and disposals of aeronautical assets.
Subregulation 4
In computing the average security asset base in relation to any year within a regulatory period —
the starting value of the security asset base for the next regulatory period shall be equal to its value at the end of the last regulatory period; and
the projected ending value of the security asset base of each year in the regulatory period shall be its starting value plus —
projected security capital expenditure during the year;
projected change in work-in-progress assets; and
projected net changes to net security working capital, where security working capital is to be determined by the Authority after consultation with the airport licensee,but less projected depreciation and disposals of security assets.