Bundesnetzagentur consults on standardised rate of return on capital for gas network operators

“Clear and reliable framework for investment”

Year of issue 2026
Date of issue 2026.08.14

The Bundesnetzagentur has today published its draft determination on calculating the standardised rate of return on capital for the natural gas sector using the weighted average cost of capital (WACC). This rate determines the return on operationally necessary assets.

“Our aim is to set a reasonable rate of return so that investments in gas networks remain financeable and stay attractive for investors. At the same time, we want to protect consumers from excessive tariffs,” said Klaus Müller, President of the Bundesnetzagentur.

It is planned to introduce the calculation of capital costs using the WACC method for the fifth regulatory period onwards (2028-2032 for gas). In future, a standardised ratio of 40% equity and 60% debt will be assumed for capital financing.

In the draft determination, the pre-tax return on equity used to calculate the WACC for gas network operators is set at 5.76% and the cost of debt at 2.43%, resulting in a WACC of 3.76%.
The Bundesnetzagentur considered it necessary to make various adjustments to the methodology for setting rates of return compared with the fourth regulatory period. The Bundesnetzagentur has taken due account of the turnaround in interest rates in 2022 by shortening the reference period for the risk-free rate to five years. The methodology also accommodates changes in the market situation. As beta values proved to be extremely volatile in 2025, the methodology is deliberately based on three-year and five-year averages and therefore places a greater focus on robustness and stability. The Bundesnetzagentur has also broadened the analysis basis for the market risk premium by including several portfolios in the assessment.