Federal Network Agency grants electricity and gas network operators higher returns – consumers pay more

Electricity

Electricity grid fees have risen continuously in recent years.

(Photo: dpa)

Berlin Good news for the more than 800 electricity network operators and around 700 gas network operators in Germany: Network Agency President Klaus Müller wants to increase the network operators’ return on equity, he said in an interview with the Handelsblatt. In other words, it grants companies higher returns.

The interest on equity for new investments will increase from 5.07 to 7.09 percent in 2024, said Müller. “That’s an increase of 40 percent. We are convinced that this will create a strong investment incentive,” he added. The network operators have been complaining for a long time that the interest rates planned from 2024 do not reflect the interest rate development of the past two years. With the increase, the authority is now moving.

The interest on equity is determined by the network agency. It is of central importance for the network operator, because it defines what returns companies are allowed to generate with their invested capital.

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