Analysis reveals high returns for German grid operators in 2023
A recent analysis by the Federation of German Energy Network Industries (BNE) indicates that major German grid operators achieved an average return of approximately 20 percent in 2023. The findings, reported by the German news magazine “Spiegel” examine 15 of the country’s 866 distribution network operators, representing roughly half of the market.
The BNE’s investigation included seven companies affiliated with E.ON, a prominent player in the German energy network sector. Consumers ultimately bear the cost of these high returns through network charges included in their electricity bills. For a typical three-person household, these charges amount to around 270 euros annually. Lower returns could potentially translate to reduced electricity costs for end consumers.
The reported returns for the 15 companies are significantly higher – four to six times higher – than the benchmark rates for network fees set by the Federal Network Agency (BNetzA).
E.ON countered the BNE’s findings, stating that the agency’s calculations and the actual returns based on commercial law represent different metrics. The company suggested that the latter figures account for extended depreciation periods and various special effects, leading to considerable fluctuations. EWE attributed its high returns to accelerated depreciation of assets, but cautioned that this doesn’t necessarily reflect future investment conditions.
However, the Federal Network Agency presents a different perspective, stating that grid operators have averaged a 12 percent return since 2016. According to the BNE, Schleswig-Holstein Netz, an E.ON subsidiary, achieved an average return of approximately 21 percent between 2019 and 2023. EWE also reportedly maintained consistently high returns during this period.