Italgas, the Italian buyer of gas company DEPA Infrastructure and distribution subsidiaries EDA THESS, EDA Attiki and DEDA, has proposed a 9.99 percent weighted average cost of capital (WACC) level for DEDA in negotiations with RAAEY, the Regulatory Authority for Waste, Energy and Water, for the rest of a four-year regulatory period covering 2023 to 2026, well above the level envisaged by the regulatory authority, expected to push for a rate below 8.57 percent.

A ratified legislative revision that had been forwarded by the energy ministry on the WACC level of the then-DEPA Infrastructure company, now reorganized, had set a WACC level of 8.57 percent for the current year, leaving the rest of the four-year regulatory period pending until the corporate reorganization of the gas company was completed.

The process has now been completed, as officially announced by Italgas, through a merger of gas distributors EDA THESS and EDA Attiki, both subsidiaries of the former DEPA Infrastructure Group, and absorption by DEDA.

In its DEDA negotiations with Italgas, RAAEY is pushing for a WACC level, for 2024 to 2026, below the 8.57 percent level set for 2023.

RAAEY will propose the precise WACC level it desires after DEDA has provided the authority with data on its borrowings and leverage. RAAEY aims to finalize the matter by the end of the year, so that tariffs can be set immediately afterwards.

As a result of DEPA’s restructuring, DEDA has undertaken the development and operation of the gas distribution network in all areas of Greece where DEPA Infrastructure, now a full-owned subsidiary of Italgas, is active. The company currently manages around 7,700 km of network and serves over half a million customers.