Finance
German regulator to allow higher power grid earnings from 2029
Published by Global Banking & Finance Review®
Posted on December 10, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 10, 2025
2 min readLast updated: January 20, 2026
Germany's energy regulator plans a 1.4% earnings increase for power grids from 2029, with tougher efficiency targets for operators.
FRANKFURT, Dec 10 (Reuters) - Germany's energy regulator has proposed new rules that would let power grid operators earn at least 1.4% more from 2029, when the next five-year regulatory period begins.
In exchange, about 900 qualifying companies will face tougher efficiency targets under stronger incentives, the Bundesnetzagentur said ahead of a media call.
"Investments in the German electricity grids are becoming more attractive. At the same time, we are ensuring that grid operators manage their operations more efficiently," said Bundesnetzagentur president Klaus Mueller, referring to a draft that also includes provisions for gas grid firms from 2028.
The regulator oversees earnings for electricity and gas networks, which are natural monopolies.
The statement set out steps to reform a system of spending returns for new five-year frameworks for power and gas, respectively.
The new framework continues to cap allowed returns over multi-year periods but will track global interest rates more closely, it said..
The 1.4% figure reflects changes under the agency’s NEST process, it said, adding that companies could earn more from rising investment volumes and higher interest rates independently of that process.
Germany's power grids need major upgrades to handle surging demand from AI-driven data centres and the electrification of heating and transport.
Gas operators, meanwhile, face shrinking customer bases as fossil fuel use declines, even as they invest in hydrogen-ready infrastructure.
(Reporting by Vera Eckert; Editing by Miranda Murray and Louise Heavens)
A regulatory framework is a set of rules and guidelines established by authorities to govern specific sectors, ensuring compliance, efficiency, and accountability among businesses and organizations.
Efficiency targets are specific goals set by regulators or organizations aimed at improving operational performance, reducing costs, and enhancing productivity within a defined period.
The energy market refers to the economic system where energy commodities, such as electricity and gas, are bought and sold, influencing pricing and supply dynamics.
Investment is the act of allocating resources, usually money, in order to generate income or profit over time, often involving the purchase of assets or securities.
Financial stability refers to a condition where financial institutions operate effectively, markets function smoothly, and the economy is resilient to shocks, ensuring sustainable growth.
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