Timescale
Current plans are for the framework and methodology determinations to be developed and discussed with the industry during 2024 with the aim of having cornerstones for the new regulatory system in place as far as possible by the notional base year 2025 in the gas sector. Although the framework determinations will precede the methodology determinations, work on both processes will need to run more or less in parallel because of the time pressure.
The aim is for the framework and methodology determinations to be formally completed in the course of 2025.
The individual determination proceedings will then be carried out to ensure that the necessary parameters are available in good time to determine the revenue caps.
Determination proceedings for setting specific tariffs are not due to start until 2025 or later.
Determination proceedings for costs and revenues and incentive regulation
All determinations on costs and revenues and on incentive regulation, which will replace the current regulatory framework under the Incentive Regulation Ordinance (ARegV), Electricity Network Tariffs Ordinance (StromNEV) and Gas Network Tariffs Ordinance (GasNEV), and which will therefore carry on from these ordinances to a certain extent, are nationally applicable determinations and are primarily the responsibility of the Grand Ruling Chamber for Energy.
Commissioned reports
The following table provides an overview of reports that have been or will be commissioned in conjunction with proceedings carried out by the Grand Ruling Chamber for Energy.
Determination | Topic/scope of report | Main content of report | Status | Start | Completion by |
---|---|---|---|---|---|
Methodology determination for return on capital | Discussion of the methodology for the market risk premium and derivation of the suitable base rate of return | Discussion of the methodology for the capital market model, market risk premium and risk-free rate and for determining the required equity ratio and borrowed capital return for the WACC | Commission awarded | September 2024 | December 2024 |
Methodology determination for the quality element/incentives for energy transition competence | Electricity network performance/energy transition competence Electricity network service quality | Derivation of suitable indicators, definition of quality requirements and determination of a monetisation/incentive factor | Commission awarded | October 2024 | Spring 2025 |
Methodology determination for efficiency benchmarking | Efficiency benchmarking for gas networks against the background of decarbonisation | The decarbonisation process will not be a uniform process; just one reason are the targets set by some federal states, cities, towns and municipalities for decarbonisation well before 2045. In light of this, the report is to make recommendations concerning the future applicability and design of efficiency benchmarking above all for gas distribution system operators. | Commission awarded | October 2024 | March 2025 |
Methodology determination for the general sectoral productivity factor | Requirements for and determination of the productivity factor (Xgen) in light of the energy transition (electricity and gas) | Assessment of the need for change in the determination of the productivity factor and possible future designs. | Call for commission proposals in preparation | - | - |
Determination of a ramp-up tariff for the hydrogen core network | Determination of the ramp-up tariff for the hydrogen core network | Examination of plausible development pathways for the future use of the hydrogen core network and subsequent identification of possible development options for the intertemporal cost allocation account and the resulting ranges for a ramp-up tariff. | Commission awarded | September 2024 | November 2024 |
Determination proceedings for access regulation
The Electricity Network Access Ordinance (StromNZV) and the Gas Network Access Ordinance (GasNZV) will cease to have effect on 31 December 2025. The process of developing rules to follow on from these ordinances therefore needs to start soon.
There will be separate determinations for the different aspects of access regulated by the Gas Network Access Ordinance (such as capacity, balancing, supplier switching, biogas access). The same applies to the aspects regulated by the Electricity Network Access Ordinance.
Delegation
Section 59(3) sentence 4 of the Energy Industry Act (EnWG) allows the Grand Ruling Chamber for Energy to delegate responsibility to another ruling chamber.
Proceedings
A list of proceedings that have been opened or delegated or that are planned is available here.