Goldman Sachs, the privatization consultant for power distribution network operator DEDDIE/HEDNO’s forthcoming sale, plans to stage a market test in November, barring unexpected pandemic-related developments, for a measure of the level of interest of prospective bidders.
This preliminary step in the sale procedure will attract major energy players from Europe and beyond, including funds seeking to invest in infrastructure offering high and stable returns, reliable sources have informed.
A February launch of the privatization by power utility PPC, DEDDIE/HEDNO’s parent company, is considered highly likely. Bidders are expected to be given a two-month period to submit binding offers. If so, officials will be in a position to announce the winning bidder in May, 2021.
Importantly, RAE, the Regulatory Authority for Energy, still needs to announce the distribution network operator’s new regulatory framework before the market test can be launched.
A formula determining the operator’s WACC, or yield, is expected to be announced by RAE this week, or, at the very latest, early next week. An official WACC figure, helping bidders shape their bids, should be set in December.