Ad­just­ment of cap­i­tal ex­pen­di­turet

• Capital expenditure (capex) true-up for distribution system operators
• Capital expenditure (capex) deduction
• Capital expenditure mark-up
• New data form and amended version of the guidance note on capital expenditure mark-up
• List of proceedings
• Further information

Capital expenditure (capex) true-up for distribution system operators

From the start of the third regulatory period (from 2019 for electricity) the provisions of the ARegV 2016 as amended apply to the capex true-up. Consequently, an annual adjustment is made for the distribution system operators' capital costs, with the revenue cap being adjusted for any change in capital costs. This changes the old system in that for capital costs there is a move away from the budget principle.

The adjustment of capital expenditure comprises two building blocks: a mark-up and an allowance.

Capital expenditure (capex) deduction

For the capital expenditure allowance the capital costs for the calendar year on which the cost examination is based (the base year) are reduced annually by the capital costs that no longer apply. These are the costs, for example, of assets that have been written down in the calendar year under review. The continuous fall in the value of assets as a result of depreciation is accounted for by making an adjustment to the interest rate. The amount of the capex allowance rises over the regulatory period.

The capex allowance is set in the course of the cost examination for the beginning of the regulatory period.

Capital expenditure mark-up

The capex mark-up takes into account newly added investments after the base year and raises the set revenue cap over the course of the regulatory period. This enables new investments to be refinanced more expeditiously.

The capex mark-up is determined in accordance with section 10a ARegV. In simple terms, the capital expenditure mark-up comprises the total of the imputed depreciation determined on the basis of the acquisition and production costs of the corporate assets under section 6(4) StromNEV, the imputed rate of return and the imputed trade tax.

The capex mark-up is an application procedure. Operators of electricity distribution networks participating in either the standard procedure or the simplified procedure can apply for capital expenditure mark-up.

The application for capex mark-up can be made once a year by 30 June.

New data form and amended version of the guidance note on capital expenditure mark-up

The new data form for capex mark-up does not contain any substantial changes. However, please note occasional changes in the "Changelog" and the "A-Stammdaten" (general master data) spreadsheet. There is also a new spreadsheet "Erläuterungen" (explanations) for the network operator to add explanatory comments. The associated guidance note by Ruling Chambers 8 and 9 has been thoroughly revised. In addition to basic updates and the removal of obsolete comments, we would like to call your attention to changes on page 6 of the guidance note, where you will find information on working with actual figures as well as with projected estimates in certain asset groups affecting your application.

Please note the following with regard to the deadline for submitting an application for capex mark-up during the ongoing coronavirus pandemic:

1. Written applications along with any explanatory comments have no special format requirements and must in all cases be submitted by the 30 June deadline. 
2. In the event that you need a deadline extension for submitting the data form due to coronavirus restrictions, please contact us by email at Poststelle.BK8@BNetzA.de and inform us as to when you expect to submit the data. We will then contact you if necessary.

List of proceedings

An overview of the yearly proceedings beginning with 2019 (all DSOs under the Bundesnetzagentur's responsibility) is available here:

List capex mark-up as from 2018

Further information