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NERA Senior Consultant Lorenz Wieshammer will give a presentation on the regulatory cost of equity for energy networks at a meeting of the German Energy Forum in Leipzig, Germany, on 21 September 2021. Mr. Wieshammer will discuss the German Federal Network Agency’s (BNetzA’s) draft decision for the upcoming fourth regulatory period in light of recent academic evidence, a newly available data source, and international benchmarks. His presentation will draw on a NERA report on international benchmarks submitted to the regulator in the consultation process and an academic publication by NERA authors on a newly available data source.

The role of electricity and gas networks is changing in the ongoing decarbonization process, leading to significant investment needs. At the same time, electricity and gas networks face increasing pressure for efficiency under incentive regulation. Network controlling faces the challenge of balancing cost efficiency and enabling the transition towards renewable energy sources. The German Energy Forum will convene a working group to discuss the regulatory cost of equity from this perspective.