FRANKFURT, Dec 10 (Reuters) - Germany's energy regulator has proposed new rules that would let power grid operators earn at least 1.4% more from 2029, when the next five-year regulatory period begins.
German Regulator Boosts Power Grid Earnings from 2029
FRANKFURT, Dec 10 (Reuters) - Germany's energy regulator has proposed new rules that would let power grid operators earn at least 1.4% more from 2029, when the next five-year regulatory period begins.
In exchange, about 900 qualifying companies will face tougher efficiency targets under stronger incentives, the Bundesnetzagentur said ahead of a media call.
"Investments in the German electricity grids are becoming more attractive. At the same time, we are ensuring that grid operators manage their operations more efficiently," said Bundesnetzagentur president Klaus Mueller, referring to a draft that also includes provisions for gas grid firms from 2028.
The regulator oversees earnings for electricity and gas networks, which are natural monopolies.
The statement set out steps to reform a system of spending returns for new five-year frameworks for power and gas, respectively.
The new framework continues to cap allowed returns over multi-year periods but will track global interest rates more closely, it said..
The 1.4% figure reflects changes under the agency’s NEST process, it said, adding that companies could earn more from rising investment volumes and higher interest rates independently of that process.
Germany's power grids need major upgrades to handle surging demand from AI-driven data centres and the electrification of heating and transport.
Gas operators, meanwhile, face shrinking customer bases as fossil fuel use declines, even as they invest in hydrogen-ready infrastructure.
(Reporting by Vera Eckert; Editing by Miranda Murray and Louise Heavens)
