German energy network operators are poised to receive increased returns on investment, according to a statement from Klaus Müller, President of the Federal Network Agency (Bundesnetzagentur). In an interview with the Handelsblatt, Müller signaled a shift in the agency’s regulatory approach, explicitly acknowledging the need for a more attractive investment climate for those managing Germany’s vital electricity and gas infrastructure.
The move, according to Müller, isn’s solely a reaction to prevailing interest rate fluctuations. Instead, a methodological adjustment within the agency’s calculations is expected to result in a rise in returns. While the precise figures remain to be determined, Müller confirmed that an increase is now anticipated.
Network operators have long voiced concerns that current rates of return approved by the Bundesnetzagentur are inadequate when viewed within an international competitive landscape, making it increasingly difficult to secure investment. This sentiment was recently echoed by Federal Minister for Economic Affairs, Katheine Reiche, who emphasized the necessity for an improved financial framework to support network development, specifically noting that Germany lagged behind other European nations and internationally regarding returns on invested capital.
Müller emphasized that the Federal Network Agency’s planned adjustments are consistent with Minister Reiche’s concerns. He stated there is “no contradiction” between her remarks and the agency’s ongoing preparations concerning future capital returns, adding that “there’s not a leaf out of place” between the two positions. The change signals a potential easing of regulatory pressure on network operators and aims to facilitate continued investment in vital energy infrastructure.
