German Regulator Cuts Power, Gas Grid Earnings to Protect Consumers

German Regulator Cuts Power, Gas Grid Earnings to Protect Consumers
A technician of RWE controls a compressor station in the western town of Huenxe, Germany, on Jan. 7, 2009. Ina Fassbender/Reuters
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FRANKFURT—Germany’s federal network agency on Wednesday curbed the permitted return on new infrastructure for power and gas networks in the years to 2029 in a move aimed at protecting consumers from higher energy bills.

In its equity interest rates for the networks published on Wednesday, the authority proposed a permitted return for new infrastructure of 5.07 percent, versus 6.91 percent now, in the regulated sectors, where costs are recouped through fees levied on prices paid by energy customers.