FNB Gas on the Federal Network Agency’s Announcement Regarding the Determination of the Weighted Average Cost of Capital (WACC)

In response to the Federal Network Agency’s (BNetzA) announcement regarding the determination of the weighted average cost of capital (WACC) (Federal Network Agency – News – Decision-Making Chamber 9), Barbara Fischer, Executive Director of FNB Gas e.V., states:

“FNB Gas welcomes the fact that, as part of the process of determining the weighted average cost of capital (WACC), the BNetzA intends to use capital market data from the calendar year 2026 and that the cost of equity and debt will be updated based on the data available at that time. In doing so, it is addressing a key point of criticism raised by the transmission system operators (TSOs).

However, simply updating the data is not enough. It is crucial that the methodological criticisms of the draft regulation also be properly addressed. For example, the BNetzA’s draft regulation contains errors in the application of its own methodology for return on capital and statistical shortcomings. As a result, the actual capital market conditions, as well as the risks and financing costs of the TSOs, are not adequately reflected. The TSOs had submitted a comprehensive financial analysis report on this matter.”