RAE, the Regulatory Authority for Energy, has set the figures for the Allowed Revenue from 2015 to 2017 and Adequate Revenue (minimum Actual Collected Revenue) for 2015 at IPTO, Greece’s Independent Power Transmission Operator – locally referred to as ADMIE.
The weighted average cost of capital (WACC) before tax, in nominal terms, was set at 8.5 percent by RAE for each of the three aforementioned years. The real WACC terms, taking inflation into account, were set at 8.5 percent, 7.5 percent, and 7.3 percent for 2015, 2016, and 2017, respectively, meaning that the real earnings figure as a weighted average over the three-year period is 7.76 percent.
Based on these figures, RAE approved IPTO’s Allowed Revenue figures at 254.6 million euros for 2015, 250 million euros for 2016, and 260 million euros for 2017. The authority also approved the Adequate Revenue (minimum Actual Collected Revenue) for 2015 at 215,108,262 euros.
The determination of these figures stands as a fundamental part of IPTO’s privatization process, as potential bidders in the forthcoming international tender will be able to make their calculations with greater clarity.
According to sources, the revenue figures decided on by RAE do not represent a major investment opportunity, but the candidates have received them as ones capable of offering a sustainable enterprise. IPTO had sought real-revenue WACC figures of 11.2 percent in 2015, 8.6 percent in 2016, and 7.9 percent in 2017, averaging 9.23 percent.