German regulator sets return on equity for electricity and gas networks for the next regulatory period

For assets commissioned before 2006, this corresponds with a pre-tax rate of 3.51% post-tax 2.86%. The reduction in regulatory return on equity happens at a point in time when investment volume must continue to grow in order to achieve accelerating climate protection targets.

Today’s determination of the equity interest rate alone would lead to a substantial reduction of annual earnings starting in 2024, which will then not be available for the urgently needed investments in the expansion of our grid infrastructure.