Determination of the Regulatory Asset Base after Revaluation of License Holder’s Assets. Chart of Accounts

This Issue Paper provides deeper insight on the key aspects related to the setting on the RAB. It discusses the key aspects and components of the RAB and reviews the way that regulators in the ERRA countries have determined the RAB. A questionnaire was sent to gather information on the current practice of the ERRA members. The conceptual part of this Issue Paper explains the key factors to set a reasonable level of RAB taking into consideration of the treatment of capital contributions, construction work in progress, investments and working capital. Moreover information on different asset valuation approaches which impact