RCV Indexation: real term price effects

The objective of this work is to provide supporting evidence to assist our decision on whether to move away from RPI to an alternative form of indexation for the RCV and revenue controls for future price control periods. There are a number of potential arguments supporting a shift from RPI to CPI: • CPI is gaining legitimacy as an alternative indexation measure to RPI. In fact, while the 2015 Johnson review suggested that ‘no taxes, benefits or regulated prices should be linked to the RPI’ and that the ONS sh...