16:07 03 Nov 26
Info Report Check
Submission incomplete:
The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
It is noted that components of WACC were calculated using different vintage years that are not consistent with the investment horizon; in particular the market return rate based on data for 10.3 years ( from July 2000 to Nov 2010) (page 32 of the Validation Report) and risk free rate based on recent 10 years average government bond return rate (page 32 of the Validation Report), whereas the technical life of the project is 33 years. Furthermore, the DOE is requested to submit calculation excel sheet for the cost of equity.
The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
It is noted that components of WACC were calculated using different vintage years that are not consistent with the investment horizon; in particular the market return rate based on data for 10.3 years ( from July 2000 to Nov 2010) (page 32 of the Validation Report) and risk free rate based on recent 10 years average government bond return rate (page 32 of the Validation Report), whereas the technical life of the project is 33 years. Furthermore, the DOE is requested to submit calculation excel sheet for the cost of equity.
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