The in­tro­duc­tion of in­cen­tive reg­u­la­tion

In 2005 the legal framework was changed in order to abolish the system of cost-plus regulation for electricity and gas network operators, which was in place at that time, and replaced with an incentive regulation scheme.

In accordance with section 112a(1) EnWG the Bundesnetzagentur had to present to the federal government - by 1 July 2006 - a report on the introduction of incentive regulation that contained a workable concept for an incentive regulation scheme. The federal government for its part, pursuant to section 118(5) EnWG, was to present a draft ordinance having the force of law immediately after submission of the report. To comply with the legislative intent, the Bundesnetzagentur launched a broad-based consultation process in which intensive dialogue took place with representatives of industry, science and the federal states. The concept developed by the Bundesnetzagentur was published in a draft report for consultation on 2 May 2006. By 26 June 2006, the Bundesnetzagentur had received 27 responses. The Bundesnetzagentur assessed the responses carefully and took them fully into account in its report.

Reports on the introduction of incentive regulation

- in accordance with section 112a EnWG and section 21a EnWG

Report on the introduction of incentive regulation (all in German language only)

  1. First reference report on incentive regulation
    Comments on the first reference report
  2. Second reference report on incentive regulation
    Comments on the second reference report
  3. Third reference report on incentive regulation
    Comments on the third reference report
  4. Fourth reference report on incentive regulation
    Comments on the fourth reference report

CONSENTEC-Expert opinion on analytical cost models (German)

Talks and presentations

Consultation groups

First consultation group meeting, 25 August 2005
Invitation (German)
Consultation group - meeting (German)

Second consultation group meeting, 29 September 2005
Invitation (German)
Consultation group - meeting (German)

Third consultation group meeting, 02 November 2005
Invitation (German)
Consultation group - meeting (German)

Fourth consultation group meeting, 8 December 2005
Invitiation (German)
LBD consulting company (German)
WIK Consult – analysis of the cost drivers in electricity grids and gas networks (as of: 8 December 2005) (German)

Fifth consultation group meeting, 26 January 2006
Invitation (German)
Study- Consentec, IAEW, Rechenzentrum für Versorgungsnetze, frontier economics (as of: 26 January 2006) (German)
Assessment – Bundesnetzagentur (German)
WIK Consult – analysis of the cost drivers in electricity grids and gas networks (as of: 26 January 2006) (German)

Sixth consultation group meeting, 28 February 2006
Invitation (German)
BEAK Consultants - regionally structural cost drivers - GIS data analysis (German)
Study - Consentec, IAEW, Rechenzentrum für Versorgungsnetze, frontier economics (as of: 28 February 2006) (German)
Sumicsid - Benchmarking Parameters (pdf / 446 KB)
Sumicsid - comments (German)
Summary (German)

Seventh consultation group meeting, 21 March 2006
Invitation (German)
Consultation group (German)
E-Bridge - Gutachten Qualitätsregulierung (pdf / 171 KB)
Database used - TFP-calculations
Database used – input price calculation

Eighth consultation group meeting, 11 April 2006
Invitation (German)
Sumicsid - Benchmarking models (pdf / 431 KB)
Sumicsid - Model specification (pdf / 252 KB)
Incentive regulation overall concept (German)

Ninth consultation group meeting, 01 June 2006
Invitation (German)

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