Power grid operator IPTO is currently preparing additional data for RAE, the Regulatory Authority for Energy, requested by the authority to determine the weighted average cost of capital (WACC) and regulated yield for Ariadne, an SPV established by the operator to develop the Crete-Athens grid interconnection.

Besides IPTO, RAE’s WACC decision will also interest investors interested in acquiring a minority stake expected to soon be offered in Ariadne.

IPTO plans to offer an Ariadne stake of less than 49 percent, the most likely figure being a 39 percent share that had been offered to Euroasia Interconnector, a consortium of Cypriot interests heading the wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project.

IPTO and Euroasia have been embroiled in a dispute for control of the project’s Crete-Athens segment. Euroasia did not respond to a February 28 deadline for this minority share but, instead, has warned of taking action.

IPTO has already submitted a proposal to RAE for the remainder of the regulatory period covering 2018 to 2021. A WACC figure already set by RAE for the national grid for this period, beginning at 7 percent and gradually descending to 6 percent, will serve as a base for the Ariadne figure.

Investors will be invited to submit bids to an Ariadne tender over two stages, beginning with expressions of interest to shortlist contenders, and followed by binding offers. An Internal Rate of Return (IRR)  maximum price will be set as a starting price for a descending price auction.