Swissgrid welcomes the new WACC calculation method

6-2-2013 — /europawire.eu/ — The Swiss Council of Ministers announced the revision of the Electricity Supply Ordinance on 30 January 2013. Among the changes is the alteration of the WACC calculation method. Swissgrid welcomes the government’s new WACC calculation method, which corresponds to general capital-market practice and increases the attractiveness of investments in grid infrastructure.

Swissgrid is committed to WACC calculations in conformity with the market. As the new owner of the transmission grid, it has a central role in maintaining the security of supply. Accordingly, it has planned an extensive investment programme in the Swiss transmission grid amounting to several billion Swiss francs. For these investments, Swissgrid must obtain money on the credit and capital markets.

For investors, it is of huge significance that Swissgrid has a market-oriented and stable yield to enable it to offer parties providing it with capital a rate of interest that is appropriate for the level of risk and is in line with the market. The smoothing out of the WACC as contained in the new formula will avoid investors being deterred by a high level of volatility. A stable yield guarantees investors long-term planning security for their invested capital, which also fits in with the long-term planning approach of the grid operator.

The change in the WACC calculation methodology decided on by the Swiss Council of Ministers confirms the importance of future-oriented grid modification and expansion for a sustainable supply of energy in Switzerland. However, to eliminate existing bottlenecks and support the realisation of the government’s energy targets, extensive additional measures are required as part of the energy strategy, with the aim of massively reducing the approval process.

Media release SFOE (German)