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Dutch energy regulator publishes report on Cost of Capital in gas transmission

The Dutch energy regulator, DTe, has finalised its decision on the price limits for gas transmission services. A key element in this process was an estimate of the the appropriate cost of capital for the operation of gas transmission in the Netherlands. In estimating the cost of capital DTe drew on analysis by Frontier (London). The analysis by Frontier estimated that the cost of capital (pre-tax real) for gas transmission lies in the range 4.6% to 6.2%. As part of the analysis Frontier used evidence from a comprehensive dataset of quoted energy network companies from around the world.