RAE to cut extra WACC for electricity interconnections

RAE, the Regulatory Authority for Energy, will eliminate any extra weighted average cost of capital (WACC) concerning electricity interconnection projects, the authority’s president, Athanasios Dagoumas, has informed a parliamentary committee.

RAE is basing its decision on a cost-benefit analysis study conducted by the authority, while latest European approaches have also been taken into account, the aim being to converge with European WACC standards, the chief executive noted.

The president of RAE stressed that the role of the authority is to control operator expenditures, which, he added, is public money. “We’re cutting expenses – what is not substantiated as an expense will be cut,” he underlined.

The RAE president also protested that market operators are presenting financial data to RAE for approval with great delay, forcing the authority’s staff to work overtime to meet schedules.

RAE has moved swiftly to offer its approval of a series of projects, such as the IGB, the Alexandroupoli FSRU, and a pipeline link with North Macedonia, the chief official noted, adding that the authority’s role is to protect public interest. “We ask you to recognize and support this,” Dagoumas told the parliamentary committee.