“Regulator cuts grid yields”

The Federal Network Agency (BNetzA) has suggested lowering the equity interest rate for operators of power grids and gas networks as of 2018/19, it said on Wednesday. The lower rates mirror current low interest rates on financial markets, BNetzA president Jochen Homann said. 1,600 network operators will face reduced earnings of hundreds of millions annually, Klaus Stratmann writes in the Handelsblatt. Utility association VKU told the Handelsblatt that lower interest rates were making investments in new grid connections less interesting – at a time when Germany was in need of a massive power grid expansion. Consumers would benefit from the new rules since they are paying for the grid via their power bills, Stratmann says. The BNetzA suggestions will be consulted until August, a final decision is expected in September.

Read the article in German (behind paywall) here.