The increase in renewable energies requires rapid grid expansion. In order for this to succeed, there should now be higher returns for new investments for the operators of electricity and gas networks.
The network expansion required for the energy transition is to be promoted by higher returns for network operators. In order to offer the operators of electricity and gas networks more incentives for investments, the Federal Network Agency wants to increase the return on equity it sets.
It should be 7.09 percent in 2024 and only apply to new investments, as the authority reported on Wednesday in Bonn. The interest rate is currently 5.07 percent.
The network users, i.e. households, trade and industry, also pay the operators’ returns via the network charges. “The additional burden there must be limited to what is absolutely necessary,” said Network Agency President Klaus Müller.
Experts are assuming that the planned increase in interest rates will increase the amount of electricity network charges nationwide by a total of around 500 million euros per year. For an average household with an annual consumption of 3500 kilowatt hours, this would mean additional costs of 10 to 12 euros per year.
The authority has now put its proposals up for discussion. Network operators or associations can comment on this by the end of August. The final determination is to be made at the end of the year.
Source: Stern
