Regulated revenue is a critical amount for all Operators, as it is intended to cover a reasonable part of the investment costs, which are borne by the users of the networks, the consumers, who are thus forced to pay higher usage charges in the electricity tariffs.
Its limitation, on the other hand, by RAE, which has the competence as the Regulator of the energy market to determine it, is based on its reasoning that a) on the one hand, network users must be protected from large increases and b) on the other hand , that the Administrators do not rest on the guaranteed income they have and do not do their work as they should do it.
This was also the reason why the methodology for calculating this income was changed, incorporating incentives for Administrators.
According to IPTO "the required regulatory support, with an extraordinary revision of the WACC to at least 8.51%, will allow IPTO to continue smoothly implement its investment program, with which the country is shielded in terms of energy supply through domestic and international electrical interconnections.
At the same time, it will depend on the amount of the regulated income whether IPTO will be able to participate with sufficient investment funds in large energy projects that are maturing in this period, as well as to allocate the necessary operational resources for the further development of ESMIE.
Another critical parameter is the ongoing tender for the sale of 20% of the Ariadni Group's subsidiary Interconnection. Since the process is expected to be completed in the near future, the timely revision of the WACC will allow the correct valuation of the transaction so that the Administrator and, by extension, the Greek State do not lose income.
A review is also required by RAE regarding the operational costs of the Administrator, as in a period of rapid development of ESMIE, and despite the documented needs of the company to increase regular staff, only one fifth of the requested recruitments for the next four years were finally approved.
It is clear that IPTO needs more regular - mainly scientific - staff, in order to complete the insular and international interconnections on time by the end of the decade, to immediately staff 24/7/365 shifts in newly established and critical infrastructures of the Administrator (such as the security operation center and the network operation center), for the energy transition to proceed quickly and for the network to be expanded / properly maintained. Especially with regard to the maintenance of the System, where a large number of temporary staff are employed, mostly technicians, the Authority for the first time did not approve any expenditure for new hires".
