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WACC Regulation
Billions in Investments at Low Interest Rates: FNB Gas Considers the Federal Network Agency’s Draft Proposal Inappropriate
Transmission system operators are sharply criticizing the Federal Network Agency’s draft proposal regarding the future rate of return on capital for gas networks. The rate of return on capital (WACC) proposed by the agency is insufficient to cover actual financing costs. Beyond the natural gas sector, this directly jeopardizes investor confidence in the German regulatory system, which is supposed to permanently guarantee a legally enshrined rate of return on invested capital at an “appropriate, competitive, and risk-adjusted level.”
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