Reduced Fees for Consumers as WACC Adjustment Hits DEDDHE

The proposed increase for the Weighted Average Cost of Capital (WACC) during the period 2025-2028 was not accepted. DEDDHE had requested an increase in the average cost of capital to 8.2%, but the Regulatory Authority for Energy (RAE) capped it at around 7% annually. Specifically, the Authority did not approve some of the new projects by the operator, resulting in a recalibration of costs and consequently lower amounts to be recovered through electricity bills over the next few years. As a result, consumers will pay smaller regulated charges compared to if DEDDHE’s proposal had been approved. The initial submission projected charges of 3.28 cents per kilowatt-hour for households and small businesses this year, which will now be adjusted downwards.