WAN­DA

• Determination
• Introduction, consultation and responses

The WANDA determination creates rules for regulating the network tariffs for the hydrogen core network. It establishes the basic regulatory framework for calculating the network tariffs as well as the key economic basis for investments in the core network.

The reason for the determination is that the Bundesnetzagentur has been given new powers for regulating hydrogen networks and setting up the hydrogen core network. Hydrogen will play a key role in the energy transition. Beyond the overall availability of competitive hydrogen, an efficient infrastructure is particularly crucial for a successful launch of the hydrogen economy. The hydrogen core network will help to create an infrastructure that will enable the transport of hydrogen throughout Germany.

The WANDA determination creates rules for regulating the network tariffs for the hydrogen core network. It establishes the basic regulatory framework for calculating the network tariffs as well as the key economic basis for investments in the core network.

Especially in the early stages of setting up a hydrogen transport infrastructure, it is important to correct any imbalance between the demand for transport services and the costs of the networks. Although the market for hydrogen has yet to develop and it will take time for the use of the hydrogen core network to increase, the costs associated with development of the network will be high from the outset. Thus it is necessary to ensure that the investments to create the infrastructure can be recovered without having network charges that are so high they are not marketable.

The problem described will be resolved by setting a ramp-up tariff that will be applied uniformly at all entry and exit points starting in 2025. The aim of the ramp-up tariff is to enable the initial costs of the core network to be refinanced by 2055 while keeping costs as steady and predictable as possible throughout the entire time period.

The planned payback period that lasts till 2055 can more or less be broken down into two phases. Whereas the network operators will be generating shortfalls in revenue in the initial phase, the ramp-up tariff will lead to more revenue than costs in the second phase, ie it will generate additional revenue. The initial shortfall in revenue on an intertemporal cost allocation account makes it possible to recover the network costs later.

Determination

Since the determination is issued in relation to all active hydrogen core network operators in Germany, the Grand Ruling Chamber for Energy is giving public notification of the determination in place of service pursuant to section 73(1) sentence 1 EnWG in accordance with section 73(1a) sentence 1 EnWG. Public notification is brought about by publication of the operative part of the determination, the notification of appellate remedies and a brief statement that the decision in full has been published on the Bundesnetzagentur's website in the Bundesnetzagentur's Official Gazette (section 73(1a) sentence 2 EnWG). In accordance with section 73(1a) sentence 3 EnWG the determination is considered to have been served on the day on which two weeks have elapsed since the date of public notification in the Bundesnetzagentur's Official Gazette.

Introduction, consultation and responses

Introduction

The Grand Ruling Chamber for Energy initiated a consultation referred to as WANDA for determining the provisions on calculating the network tariffs chargeable for access to the hydrogen core network and for establishing a payback mechanism effective for a certain period. The consultation provides an opportunity for market participants to submit comments.

Draft WANDA determination (in German) Festlegungsentwurf WANDA (pdf / 1 MB)

More detailed information about the determination's content is available here: Document accompanying the determination for the financing of the hydrogen core network (WANDA) (pdf / 144 KB)

The Grand Ruling Chamber opened the proceedings on 9 April 2024 (reference GBK-24-01-2#1).

Consultation

Market participants were given the opportunity to submit comments to be received no later than 30 April 2024.
The Bundesnetzagentur plans to publish the comments on its website after removing any trade and business secrets or personal data.
Further information on transparency can be found here.

Responses

The comments will be published shortly.