FNB Gas on the Federal Network Agency’s proposal for a WACC rate of 3.76 percent

The Federal Network Agency published its draft regulation today on the determination of the rate of return on capital for natural gas network operators. Barbara Fischer, Managing Director of FNB Gas, commented:

The return on total capital proposed today by the BNetzA is far too low in the general investment environment and is merely on par with currently observable interest rates on debt. Given the actual financing costs—which are also driven by the increased risks faced by FNBs—this rate is therefore not competitive and jeopardizes the financing of the FNB’s legally mandated tasks related to security of supply and the energy transition. Improvements are needed in this area.

Barbara Fischer, Managing Director of FNB Gas