Higher returns for power grid operators? Netzagentur President Müller gives hope

Berlin, Dusseldorf Federal Network Agency President Klaus Müller is open to demands that operators of electricity grids be granted a higher return on equity: “We see that the interest rate environment is changing. That is why we are currently taking a very close look at whether and, if so, which adjustments to the return on equity are necessary,” Müller told the Handelsblatt.

Müller thus brings movement into a deadlocked debate. As early as autumn 2021, Müller’s predecessor, Jochen Homann, had stipulated that network operators should only receive 5.07 percent interest before corporation tax on capital employed in the case of new systems – instead of the previous 6.91 percent.

For old systems, he set an interest rate of 3.51 percent instead of 5.12 percent. The new interest rates are to apply from the fourth regulatory period, which begins for electricity grid operators in 2024. The interest rates have been in effect for gas network operators since 2023.