RAE, operators far apart on WACC levels for 2023-2026

RAE, the Regulatory Authority for Energy, and the country’s gas distribution network operators appear to be far apart on WACC (weighted average cost of capital) figures for the next regulatory period covering 2023 to 2026, energypress sources have informed.

The authority is expected to set its levels early in 2023, the sources noted. Locking in the WACC level for the four-year period will enable Required Income levels to be determined along with tariffs for each of the operators.

The distribution network operators, EDA Attiki, EDA Thess and DEDA, have yet to announce their desired WACC levels for 2023 to 2026, but it is believed they want a significant increase on the current levels.

The current regulatory period is ending with a WACC level of 7.03 percent, the level recorded in 2021, following levels of 8.18 percent in 2019 and 7.45 percent in 2020.

RAE contends there is no reason to deviate from the current WACC formula, which, it has noted, includes all the factors that reflect the economic environment in which EDA Attiki, EDA Thess and DEDA operate, including inflation and country risk.

Given its approach, RAE appears likely to set just marginally higher WACC figures for the next four-year regulatory period.