Finance

Our Business Model

Amprion shares responsibility for the EHV transmission grid in Germany with three other transmission system operators. Our customers pay grid tariffs to use the grid, the level of which is monitored by the State. Our business is subject to strict regulation.

It’s this regulation that enables us to fulfil our statutory obligation at all times. At the same time, it enables the legislators to ensure that the grid operators do not abuse their special position. The Federal Network Agency, as the regulatory authority, monitors both of the above. Apart from that, it also offers incentives to encourage efficiency.

Incentives for Efficiency

Germany’s legislators and the Federal Network Agency have formulated the regulatory framework in such a way that we, like every other company, are able to turn a profit if we run our business cost-consciously and efficiently.

To this end, the lawmakers introduced the system of “incentive regulation” in 2009 that incorporates regular cost and efficiency reviews. The Federal Network Agency stipulates a ceiling for the revenues accruable from grid tariffs over a specified period in the future – the “regulation period”.

Positive Ranking with a stable Outlook

Since 2011, we have also arranged for the independent rating agencies Moody’s Investor Service and Fitch Ratings to conduct an annual assessment. Both have rated our creditworthiness consistently as A3 and A-, respectively – with a stable outlook. This positive rating helps ensure that we enjoy ready access to the capital markets for future funding.