E.ON SE (EONGY) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone and welcome to our 9-month 2025 results call. Thank you for taking the time to join us today. I am here with our CFO, Nadja Jacobi, who will give you an update on our financials. As with every occasion, we will leave enough room at the end for your questions. With that, over to you, Nadja. Thank you, Iris, and a warm welcome to all of you from my side as well. Before I turn to our financials, I would like first to touch upon the latest regulatory developments in Germany. The German regulator has announced the start of the final consultation process concerning the framework concept with a committee of representatives from regional regulatory authorities. Compared to its draft proposals published in the summer, the regulator has introduced amendments to certain items, most of which affect smaller network operators. The main aspect for us is that the regulator intends to maintain the seven-year average approach for determining the cost of debt on the existing asset base without annual adjustments. This fails to consider that material debt must be refinanced at current market rates. The proposed higher rating of years with higher investment is a step in the right direction, but it does not solve the problem as the average would still be below current market rates. Consequently, the current draft of the framework does not fairly reflect grid operators' financing cost. Allowing for an annual adjustment would have ensured a more appropriate reflection of actual market developments for both customers and grid operators. The proposals are still in draft format and so far we have only seen a brief BNetz-R release. However, the regulator has indicated that the current version is close to final and plans to keep its year-end target for finalizing the framework and...