BEREC Report Regulatory Accounting in Practice 2016

This is the 12th annual report in a series summarising the findings of a detailed survey of regulatory accounting frameworks across Europe.
The information has been gathered from National Regulatory Authorities (NRAs) and covers the implementation of regulatory cost accounting methodologies, which include allocation as well as annualisation methodologies, systems and processes.These regulatory accounting frameworks provide NRAs with financial information essential to facilitate some of their significant regulatory decisions such as setting price controls, monitoring compliance with ex ante obligations (such as cost orientation of charges and non-discrimination) and informing market reviews.

The document provides an up-to-date factual report on the regulatory accounting frameworks implemented by NRAs and an assessment of the level of consistency achieved. The report sets out an overview of the regulatory accounting frameworks updated to April 2016 and also illustrates, where possible, trends and comparisons with data collected each year, starting from 2006. Moreover this year report includes, for each graph reproducing trends, an origination/destination table of the changes over the period.The report develops a deeper analysis that concentrates on the Wholesale Line Rental (WLR) service and the following key wholesale markets: Wholesale Local Access (Market 3a), Wholesale Central Access (Market 3b) and Wholesale high quality access (Market 4). Moreover an analysis is given of the cost base and allocation methodologies used for fixed (Market 1) and mobile (Market 2) termination markets.