RAE, the Regulatory Authority for Energy, appears set to adopt a middle-of-the-road solution for gas grid operator DESFA’s weighted average cost of capital (WACC) for the current regulatory period (2019-2022) as well as the operator’s revenue and expense recognition.

The energy authority has decided on an 8.22 percent WACC figure for 2019, which will drop to 7.4 percent in 2022, according to energypress sources. This represents a drop in the gas grid operator’s WACC figure for the previous period,  which stood at 9.25 percent.

As for the operator’s expenses, RAE is seeking to keep their recognition level low in order to subdue tariffs. Even so, many expenses have been recognized, sources informed.

As for the recognized revenues, RAE and the operator’s new owners, the Snam-Fluxys-Enagas consortium, have been miles apart over protracted talks. RAE has insisted that tariffs paid by consumers for various regulatory services need to also include revenues stemming from miscellaneous operator activities.

Final decisions for the operator’s WACC and recognized revenues and expenses are expected this month.