OGE: “Few positive signals in NEST decision”

Open Grid Europe GmbH (OGE) sees natural gas network as key pillar in transition to a climate-friendly and resilient energy supply.

Gas network operator OGE sees few positive signals in the new methodology established by the Federal Network Agency (BNetzA) as part of the NEST process. The Agency published its determinations at a press conference on 10 December 2025. For OGE, the decisions are an intermediate step on the way to redesigning the regulatory framework with effect for the 5th regulatory period for gas from 2028.

The BNetzA's NEST determinations fundamentally change the legal framework for network operators in Germany. OGE believes these changes will have an adverse impact on gas transmission system operators. They include a reduction in the revenue cap, changes in the recognition of borrowing costs, a reduction in the return on equity (in natural gas) as well as shorter regulatory periods.

"We believe that natural gas will continue to make an indispensable contribution to maintaining security of supply at the transmission level in Germany for longer than previously anticipated," explained Nathalie Leroy, member of the OGE management board. At the same time, she emphasised that the transmission network must continue to be operated safely and, where necessary, also be expanded. It is therefore essential that the commercial rules laid down by the BNetzA ensure that investments in gas transmission networks remain competitive and attractive. Even before the methodology determinations were drawn up, gas network operator OGE had always pointed out that the future regulatory framework would have to create a solid foundation for continued investment in infrastructure and the ongoing operation of the natural gas transmission network. "From OGE's point of view, discriminating against natural gas in favour of other energy infrastructure providers is not very helpful”, Nathalie Leroy said.

OGE believes that it is the responsibility of the BNetzA is to create a level playing field where the actual borrowing costs are covered by the revenue cap and the Agency sets an interest rate for regulatory equity that is comparable across sectors and commensurate with the risk. This makes the published NEST determinations seem all the more inappropriate. "The Federal Network Agency believes the reduction in the revenue cap is justified, citing the declining importance of natural gas in the energy market. We find this difficult to understand," Nathalie Leroy continued, adding: "In fact, the opposite is true." The reality is that the current federal government is planning to hold capacity auctions for several new gas-fired power plants in the medium term to support the electricity grid and ensure reliable electricity supply for decades to come. This shows that gas infrastructure cannot be phased out any time soon. Natural gas continues to play a central role in supporting the expansion of a sustainable and climate-friendly energy supply, particularly with regard to achieving the German government's climate protection targets and ensuring the resilience of the energy system.