Operators react against RAE’s net profit deduction proposal

Market operators have disapproved a proposal by RAE, the Regulatory Authority of Energy, to deduct a percentage of their net profit from non-regulated activities, contending this would act as a growth disincentive.

Gas grid operator DESFA’s chief executive Maria Rita Galli expressed the company’s concerns earlier this week, during a press conference, following preceding disapproval by power grid operator IPTO just hours earlier in public consultation focused on a formula for the calculation of permitted and required ESMIE (electricity transmission system) revenue.

The DESFA chief executive told reporters the operator is currently in talks with RAE for an agreement that would satisfy both sides.

Deducting a percentage of net profit from operators represents an older approach that has generally been abandoned today, Galli pointed out. Subjecting DESFA to such a deduction would put the operator in a disadvantageous position compared to other companies.

RAE has informed this disputed deduction would be used for the benefit of electricity transmission system users.

IPTO has proposed that the authority’s deduction be limited to outlays made for non-regulated services.