RAE, the Regulatory Authority for Energy, is not expected to reach a decision by March 31, as has been scheduled, on the regulated earnings and network development plan for distribution network operator DEDDIE/HEDNO’s four-year period covering 2021 to 2024 because the authority has yet to receive all necessary data and information, sources have informed.
The authority’s decision on regulated earnings, to apply retroactively as of January 1, 2021, is important for the DEDDIE/HEDNO privatization, to offer investors a 49 percent stake, as it will determine WACC amounts and other key dimensions.
RAE has already established formulas for calculating required distribution network earnings and WACC figures.
The operator’s new framework includes two four-year periods, 2021 to 2024 and 2025 to 2028, offering prospective buyers a longer-term outlook on this investment’s yield.
Last Friday, power utility PPC extended its expression-of-interest deadline for the sale of its minority stake in DEDDIE/HEDNO to February 19, from January 29, following requests by prospective bidders. They now have until February 5 to forward any related queries and February 26 to produce supporting documents needed for the sale’s preliminary expression-of-interest stage.
Five to six investment teams, comprised mostly of companies and funds, are seen participating in the sale of a minority DEDDIE/HEDNO stake.