Germany's Bundesnetzagentur has postponed its decision on gas networks' allowed return on capital until 2027 so that it can include capital-market data from 2026. The regulator announced the change on 5 November 2026. Network operators will receive more current calculation inputs for the next regulatory period, but will have to wait longer for final figures. On its present assessment, the regulator expects a higher weighted cost of capital; it has not set a new binding rate.
Key facts
- The next regulatory period starts on 1 January 2028, with the return on capital to be fixed for another five years.
- The first consultation closed on 14 September 2026 and produced 134 submissions.
- A fresh consultation is planned for the second quarter of 2027, followed by a final decision provisionally in late summer.
Why could the newer data increase the rate?
The weighted average cost of capital, or WACC, combines the costs of equity and debt. For the debt component relating to existing investments, the Bundesnetzagentur uses a seven-year average. Its 5 November announcement says including 2026 adds another year of higher interest rates, raising the debt-interest input. It also expects an increase in the risk-free rate used within the equity calculation.
Ruling Chamber 9 will nevertheless update all the interest-rate components. These include the bond index used for debt, together with the risk-free base rate, market-risk premium and risk factor used for equity. The chamber considers updating only selected components methodologically vulnerable. The delay therefore allows a coordinated recalculation, rather than an isolated adjustment to one interest rate.
The direct subjects of the decision are gas-network operators and the capital costs recognised in their regulatory calculations. The announcement gives neither a final WACC percentage nor a quantified addition to household bills. The expected direction of the capital-cost rate consequently does not establish a particular price change for individual gas customers.
How has the decision timetable changed?
The regulator opened the proceeding on 14 August 2026. Its legal and methodological foundations include a methodology determination dated 8 December 2025. The original consultation notice explicitly concerns gas-network operators' fifth regulatory period.
According to the chamber, numerous submissions argued that final values should be determined in 2027. That would allow the calculation to reflect capital-market developments closer to the beginning of the new period. The regulator has now accepted that argument despite the resulting risks to its administrative timetable.
| Procedural stage | Timing | Status |
|---|---|---|
| Opening and first consultation | 14 August 2026 | Completed |
| First submission deadline | 14 September 2026 | Closed; 134 submissions |
| Renewed consultation | Second quarter of 2027 | Announced |
| Final determination | Provisionally late summer 2027 | Pending |
| Start of regulatory period | 1 January 2028 | Scheduled |
How are existing and new investments treated?
The chamber's procedural announcement distinguishes existing investments from new assets completed after the base year for the forthcoming regulatory period. Those new investments fall within the capital-cost adjustment mechanism. Their debt-interest rate is taken from the year in which the asset was completed. When the investments become part of the existing asset base in the following regulatory period, they receive the updated WACC applicable then.
The later decision also complicates other regulatory work. The efficiency-benchmarking model must initially be developed using provisional values at the beginning of 2027. If those values differ substantially from the final return on capital, the model may need adjustment. The chamber says that this could put the overall timetable at risk.
It accepts that risk in exchange for more recent data and considers an orderly start possible, if necessary, using revenue caps that have already undergone consultation. The next public procedural step is the renewed consultation in the second quarter of 2027. The chamber expects its final decision only in late summer because, in particular, the data needed to determine the risk factor will not be available earlier.
