DESFA bidders, TAIPED want network usage fee clarification

TAIPED, the state privatization fund, has asked RAE, the Regulatory Authority for Energy, to revise the country’s natural gas network usage fees in order to provide a clear picture of the investment conditions and earning potential – over the next four years – of DESFA, the natural gas grid operator, whose 66 percent has been placed for sale in an international tender now in progress.

In essence, TAIPED is forwarding a request on behalf of bidders taking part in the DESFA tender, renewed following the eventual collapse of a previous sale effort.

Participating investors are anticipating a WACC (weighted average cost of capital) reduction in 2018 as a result of the significant drop in the country risk factor, which should reduce the DESFA investment’s yield, but want to calculate the extent of this drop.

Three of six bidding teams that submitted first-round bids early this month are expected to be shortlisted by TAIPED this coming Monday.

RAE is expected to reset Greece’s natural gas network usage fees in 2018 for a four-year period.

According to energypress sources, RAE does not want to be forced into making a premature revision to Greece’s natural gas network usage fees. The authority has noted the revisions will be made as scheduled, within 2018, and apply for the next four years.

At this stage, RAE appears willing to restrict its current actions to revising usage fees concerning Greece’s LNG termina on Revythoussa, an islet just off Athens, acknowledging that these are excessive, especially following the excessive LNG imports made during last winter’s energy crisis, which generated greater than expected earnings for DESFA.