The Federal Network Agency of Germany (Bundesnetzagentur) has sharply reduced approved network costs for RWE’s transmission arm by 9% below that applied for.

RWE estimates this will be worth in the “high double digit million” range on its revenue, previously around €1 billion.

The new system usage charges became valid this August and run to 31 December 2007. Berthold Bonekamp, chief executive of RWE Energy said: “The current cost reductions of the Federal Network Agency represent a significant intervention into our network business.”