Risk reward for German energy networks
With the introduction of incentive regulation, the German energy regulator, Bundesnetzagentur, is in the process of setting the allowed rate of return on equity for German energy networks in line with the relevant decrees (StromNEV, GasNEV). This calculation includes the yield of German government bonds and a network specific risk premium.
Bundesnetzagentur today published a report by Frontier (Europe) that assesses alternative methods for determining the network specific risk premium and to quantify risks in the network sector.
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