Germany's Bundesnetzagentur Federal Networks Agency has ordered three utilities to cut their proposed power transmission fees despite the affected companies warning that it will reduce their revenues by millions.
The agency said that RWE must cut its fees by 9%, EnBW should reduce its fees by 8% and E.ON must cut fees by 14% in the period from August 1 to December 31, 2007. Grid access fees make up more than 30% of retail power prices.
RWE said that the decision will reduce its revenue by a high double digit million amount while EnBW questioned the legality of the ruling. EnBW added that the decision will make further cost cutting necessary in the operation and expansion of the power grid.
At the end of June, the network regulator ordered Vattenfall Europe to reduce its grid access fees as the regulator did not recognize 18% of the costs it was using to calculate its fees. Vattenfall appealed the decision but the ruling was upheld by a court in Dusseldorf.