In a landmark decision, the Federal Court of Justice has found that the Federal Network Agency (Bundesnetzagentur – BNetzA) has incorrectly determined the efficiency level for the 2nd regulatory period in the gas sector. The regulatory authority had wrongfully included the regional transmission system operators in the calculation of the efficiency value for distribution system operators. This is now to be corrected.
Unlike in the 1st regulatory period, the BNetzA’s calculation of the efficiency value for distribution system operators in the 2nd regulatory period took into account also five regional transmission system operators. Since the (cost) structure and activities of the transmission system operators, however, differ considerably from those of the distribution system operators, the calculation produced a distorted result leading to a higher inefficiency level for the distribution system operators. Today, the Federal Court of Justice decided that the Federal Network Agency will now need to determine again how high the efficiency level has actually been.
Today’s decision might even affect the ongoing 3rd regulatory period as the regional transmission system operators have been taken into consideration in the efficiency benchmarking for distribution system operators also for this period.
Lawyer and BBH partner Stefan Wollschläger, who represented one of the three claimants in the proceedings before the Federal Court of Justice (BGH), is happy with the result: “Comparing distribution system operators with regional transmission system operators – like the Federal Network Agency has done – is like comparing apples and oranges. I very much welcome the fact that, despite the Federal Network Agency’s wide powers of discretion, the Federal Court of Justice has now urged the agency to handle the evaluation of the basic data underlying the efficiency benchmarking with greater care.” The value of the claim represented by BBH was €6.1 million.
Becker Büttner Held is a leading provider of advisory services for energy and infrastructure companies and their customers. Energy and supply companies, particularly public utilities, municipalities and local authorities, industrial companies and international groups are among its core clients. BBH advises these and many other companies and organisations in all legal matters and also assists them with business and strategic advice.
Contact:
Stefan Wollschläger
Lawyer, Partner
Tel +49 (0)40 34 10 69-300
stefan.wollschlaeger@bbh-online.de
Press:
Dr. Ines Zenke
Lawyer, Partner
Tel +49 (0)30 611 28 40-179
ines.zenke@bbh-online.de
Visit Becker Büttner Held online at www.bbh-online.de, www.derenergieblog.de or twitter.com/BBH_online.