Distribution network operator DEDDIE/HEDNO, headed for privatization, is preparing a new and ambitious 10-year business plan reflecting the lofty goals set of the National Energy and Climate Plan, energypress sources have informed.
The operator will seek a long-term WACC figure from RAE, the Regulatory Authority for Energy, the body responsible for approving this constituent.
The operator’s multi-billion ten-year plan will include urgently needed network upgrade projects, network expansions, digitization, as well as electric vehicle sector initiatives.
A favorable revision of the regulatory framework and the WACC level, set by RAE on an annual basis, will be a crucial factor for the operator’s plan. DEDDIE’s current WACC level is at 7 percent.
WACC level clarity over a ten-year period will be sought for the operator’s prospective new shareholders, as is the case with many other European network operators. This is crucial for planning and execution of projects.
Until now, DEDDIE’s business plans have had a five-year duration. The most recent of these, worth 1.37 billion euros, was approved by RAE just last November. However, the lofty demands of the new NECP require a longer-term approach.
The operator’s new business plan is expected to be ready for presentation in two months, the energypress sources informed.