Finance
German energy regulator signals concessions on grid reform, Handelsblatt says
Published by Global Banking and Finance Review
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Germany's grid regulator plans concessions for energy firms in upcoming reforms, balancing consumer costs with investment incentives.
FRANKFURT (Reuters) -Germany's grid regulator is moving closer to meeting some of the demands of energy operators in a reform of infrastructure spending returns for the five years from 2028/2029 being finalised this year, Handelsblatt reported on Wednesday.
The newspaper cited documents from a draft reform of the sector, in which caps are set on grid companies' earnings to balance the need to keep down consumer bills against incentives for investors.
"We are creating an attractive environment for investment and limiting costs to the necessary minimum," Handelsblatt cited the authority's president, Klaus Mueller, as saying.
CONCESSIONS FOR OPERATORS
The report did not give details of envisaged rates of return on equity employed. But it said that concessions had been made on operating cost increases for the five-year periods for companies of all sizes.
It also said that the Bundesnetzagentur regulator had eased efficiency requirements and that grid firms would be better able to account for interest on debt capital.
The reform process, known as NEST - short for Netze.Effizient.Sicher.Transformiert - is expected to be completed by the end of this year and will apply to electricity grids from 2029 and gas networks from 2028.
Power grid operators such as Amprion have said that current equity-return rates are too low to finance the massive expansion needed for the energy transition to renewables.
Networks must be expanded and strengthened to handle rising power demand from AI-driven data centres, as well as the electrification of heating and transport.
Gas pipeline operators, meanwhile, face shrinking customer bases as fossil gas use declines, even as they must invest heavily in new hydrogen-compatible infrastructure.
(Reporting by Vera Eckert. Editing by Mark Potter)
Grid reform refers to changes in the regulatory framework governing the energy grid, aimed at improving infrastructure investment and efficiency while balancing costs for consumers and returns for energy operators.
The Bundesnetzagentur is Germany's Federal Network Agency responsible for regulating electricity, gas, telecommunications, post, and railway sectors, ensuring fair competition and efficient infrastructure.
The energy transition is the process of shifting from fossil fuel-based energy systems to renewable energy sources, aiming to reduce greenhouse gas emissions and promote sustainable energy use.
Operating costs in energy sectors include expenses related to the day-to-day functioning of energy companies, such as maintenance, labor, and materials, which can impact overall profitability.
Return on equity (ROE) is a financial metric that measures the profitability of a company in relation to shareholders' equity, indicating how effectively management is using equity financing to generate profits.
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