Obbligazione Eurogrid AG 0.875% ( XS2259783103 ) in EUR

Emittente Eurogrid AG
Prezzo di mercato 100 EUR  ⇌ 
Paese  Germania
Codice isin  XS2259783103 ( in EUR )
Tasso d'interesse 0.875% per anno ( pagato 1 volta l'anno)
Scadenza 20/11/2040 - Obbligazione è scaduto



Prospetto opuscolo dell'obbligazione Eurogrid GmbH XS2259783103 in EUR 0.875%, scaduta


Importo minimo /
Importo totale /
Descrizione dettagliata Eurogrid GmbH è una società tedesca specializzata nella progettazione, costruzione e gestione di infrastrutture per la trasmissione di energia elettrica.

L'obbligazione con codice ISIN XS2259783103 emessa da Eurogrid GmbH, con scadenza 20/11/2040, denominata in EUR, con cedola dello 0,875% pagata annualmente, è giunta a scadenza ed è stata rimborsata al 100%.








Base Prospectus
30 April 2020
This document constitutes the base prospectus of Eurogrid GmbH for the purposes of Article 8 (1) of
Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017, as amended
(the "Prospectus Regulation") with a denomination of at least EUR 100,000 (or the equivalent in any other
currency as at the relevant date of issuance) and a minimum maturity of one year (the "Prospectus").

Eurogrid GmbH

(Berlin, Federal Republic of Germany)
as Issuer
50Hertz Transmission GmbH
(Berlin, Federal Republic of Germany)
and
50Hertz Offshore GmbH
(Berlin, Federal Republic of Germany)
as Guarantors
5,000,000,000
Debt Issuance Programme
(the "Programme")

Application has been made to the Luxembourg Commission de Surveillance du Secteur Financier (the
"CSSF"), in its capacity as the competent authority under the Prospectus Regulation and the Luxembourg
act relating to prospectuses for securities dated 16 July 2019 (Loi du 16 juillet 2019 relative aux prospectus
pour valeurs mobilières et portant mise en oeuvre du règlement (UE) 2017/1129, the "Luxembourg Law").
The CSSF only approves this Prospectus as meeting the standards of completeness, comprehensibility and
consistency imposed by the Prospectus Regulation. Such approval should not be considered as an
endorsement of the economic and financial soundness of the operation or the quality and solvency of the
Issuer and/or the Guarantors or of the quality of the Notes that are the subject of this Prospectus pursuant
to Article 6 (4) of the Luxembourg Law. Investors should make their own assessment as to the suitability of
investing in the Notes.
Application has been made to list notes issued under the Programme (the "Notes") on the official list of the
Luxembourg Stock Exchange and to trade Notes on the regulated market "Bourse de Luxembourg". The
Luxembourg Stock Exchange's regulated market is a regulated market for the purposes of Directive
2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial
instruments and amending Directive 2002/92/EC and Directive 2011/61/EU ("MiFID II"). Notes issued under
the Programme may also be listed on an alternative stock exchange or may not be listed at all.
Arrangers and Dealers
BNP PARIBAS
COMMERZBANK
HELABA
ING
MUFG
NATWEST MARKETS
RABOBANK
UNICREDIT BANK




This Prospectus will be published in electronic form on the website of the Luxembourg Stock Exchange
(www.bourse.lu) as well as on the website of Eurogrid GmbH (https://www.eurogrid.com/de-de/Investor-

Relations/Debt-Issuance-Programme).
The validity of the Prospectus will expire on 29 April 2021. Any obligation to supplement a
prospectus in the event of significant new factors, material mistakes or material inaccuracies does
not apply when a prospectus is no longer valid.
Potential investors should be aware that any website referred to in this document does not form
part of this Prospectus and has not been scrutinised or approved by the CSSF.





IMPORTANT NOTICE
This Prospectus should be read and understood in conjunction with any supplement hereto and with any
other documents incorporated herein by reference and, in relation to any series of Notes, together with the
relevant final terms (the "Final Terms"). Full information on any tranche of Notes is only available on the
basis of the combination of the Prospectus and the relevant Final Terms.
Eurogrid GmbH ("Eurogrid" or the "Issuer" or the "Company", together with all consolidated subsidiaries,
the "Group") with its registered office in Berlin, Federal Republic of Germany, and 50Hertz Transmission
GmbH and 50Hertz Offshore GmbH (each a "Guarantor" and together the "Guarantors"), each with its
registered office in Berlin, Federal Republic of Germany and in respect of information on itself only, accept
responsibility for the information given in this Prospectus. The Issuer and each Guarantor with regard to
information for which it is responsible has confirmed to the Dealers (as defined herein) that this Prospectus
contains all information with regard to the Issuer, the Guarantors and the Notes which is material in the
context of the Programme and the issue and offering of Notes thereunder; that the information contained
herein with respect to the Issuer, the Guarantors and the Notes is accurate and complete in all material
respects and is not misleading; that any opinions and intentions expressed herein are honestly held and
based on reasonable assumptions; that there are no other facts with respect to the Issuer, the Guarantors or
the Notes, the omission of which would make this Prospectus as a whole or any of such information or the
expression of any such opinions or intentions misleading; that the Issuer and the Guarantors have made all
reasonable enquiries to ascertain all facts material for the purposes aforesaid.
The Issuer has undertaken with the Dealers to supplement this Prospectus in the event of any significant
new factor, material mistake or inaccuracy relating to the information included in this Prospectus in respect
of Notes issued on the basis of this Prospectus which is capable of affecting the assessment of the Notes
and which arises or is noted between the time when this Prospectus has been approved and the closing of
any tranche of Notes offered to the public or, as the case may be, when trading of any tranche of Notes on a
regulated market begins in respect of Notes issued on the basis of this Prospectus.
No person has been authorised to give any information which is not contained in or not consistent with this
Prospectus or any other document entered into in relation to the Programme or any information supplied by
the Issuer or any other information in the public domain and, if given or made, such information must not be
relied upon as having been authorised by the Issuer, the Dealers or any of them.
Neither any Arranger nor any Dealer nor any other person mentioned in this Prospectus, excluding the
Issuer and the Guarantors, is responsible for the information contained in this Prospectus or any supplement
hereto, or any Final Terms or any document incorporated herein by reference, and accordingly, and to the
extent permitted by the laws of any relevant jurisdiction, none of these persons accepts any responsibility for
the accuracy and completeness of the information contained in any of these documents.
The distribution of this Prospectus, any supplement thereto and any Final Terms and the offering, sale and
delivery of Notes in certain jurisdictions may be restricted by law. Persons into whose possession this
Prospectus or any Final Terms come are required to inform themselves about and observe any such
restrictions. For a description of the restrictions applicable in the United States of America, the United
Kingdom and Japan; see "Selling Restrictions". In particular, the Notes have not been and will not be
registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and include
Notes in bearer form that are subject to tax law requirements of the United States of America; subject to
certain exceptions, Notes may not be offered, sold or delivered within the United States of America or to
United States persons.
MIFID II PRODUCT GOVERNANCE / TARGET MARKET ­ Solely for the purposes of the product approval
process conducted by any Dealer who is a manufacturer with respect to the Notes for the purposes of the
MiFID II Product Governance rules under EU Delegated Directive 2017/593 (each a "manufacturer"), the

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Final Terms in respect of any Notes will include a legend entitled "MiFID II Product Governance" which will
outline the target market assessment in respect of the Notes and which channels for distribution of the Notes
are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor")
should take into consideration the target market assessment; however, a distributor subject to MiFID II is
responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or
refining the target market assessment) and determining appropriate distribution channels.
A determination will be made in relation to each issue about whether, for the purpose of the MiFID II Product
Governance rules under EU Delegated Directive 2017/593 (the "MiFID II Product Governance Rules"), any
Dealer subscribing for any Notes is a manufacturer in respect of such Notes, but otherwise neither the
Arrangers nor the Dealers nor any of their respective affiliates will be a manufacturer for the purpose of the
MiFID II Product Governance Rules. The Issuer is not a manufacturer or distributor for the purposes of the
MiFID II Product Governance Rules.
IMPORTANT ­ EEA and UK RETAIL INVESTORS - If the Final Terms in respect of any Notes include a
legend entitled "Prohibition of Sales to EEA and UK Retail Investors", the Notes are not intended, to be
offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to
any retail investor in the European Economic Area ("EEA") or in the United Kingdom ("UK"). For these
purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11)
of Article 4 (1) of Directive 2014/65/EU ("MiFID II"); or (ii) a customer within the meaning of Directive
2016/97/EU ("IDD"), where that customer would not qualify as a professional client as defined in point (10) of
Article 4 (1) of MiFID II. Consequently no key information document required by Regulation (EU) No
1286/2014 (the "PRIIPs Regulation") for offering or selling the Notes or otherwise making them available to
retail investors in the EEA or in the UK has been prepared and therefore offering or selling the Notes or
otherwise making them available to any retail investor in the EEA or in the UK may be unlawful under the
PRIIPs Regulation.
Each potential investor in Notes must determine the suitability of that investment in light of its own
circumstances. In particular, each potential investor should:
(i)
have sufficient knowledge and experience to make a meaningful evaluation of the relevant Notes,
the merits and risks of investing in the relevant Notes and the information contained or
incorporated by reference into this Prospectus or any supplement hereto;
(ii)
have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its
particular financial situation and the investment(s) it is considering, an investment in the Notes and
the impact the Notes will have on its overall investment portfolio;
(iii)
have sufficient financial resources and liquidity to bear all of the risks of an investment in the
relevant Notes, including where the currency for principal or interest payments is different from the
potential investor's currency;
(iv) understand thoroughly the terms of the relevant Notes and be familiar with the behaviour of
financial markets;
(v)
be aware that it may be required to pay taxes or other documentary charges or duties in
accordance with the laws and practices of the country where the Notes are transferred or other
jurisdictions;
(vi) ask for its own tax adviser's advice on its individual taxation with respect to the acquisition, sale
and redemption of the Notes; and
(vii) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for
economic, interest rate and other factors that may affect its investment and its ability to bear the
applicable risks.

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This Prospectus and any Final Terms may not be used for the purpose of an offer or solicitation by
anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to
whom it is unlawful to make such an offer or solicitation.
This Prospectus, any supplement thereto and any Final Terms do not constitute an offer or an
invitation to subscribe for or purchase any Notes.
In connection with the issue of any tranche of Notes, the Dealer or Dealers (if any) named as
Stabilisation Manager(s) in the applicable Final Terms (or persons acting on behalf of any
Stabilisation Manager(s)) may over-allot Notes or effect transactions with a view to supporting the
market price of the Notes at a higher level than that which might otherwise prevail. However,
stabilisation may not necessarily occur. Any stabilisation action may begin on or after the date on
which adequate public disclosure of the terms of the offer of the relevant tranche of Notes is made
and, if begun, may cease at any time, but it must end no later than the earlier of 30 days after the
Issue Date of the relevant tranche of Notes and 60 days after the date of the allotment of the relevant
tranche of Notes. Any stabilisation action or over-allotment must be conducted by the relevant
Stabilisation Manager(s) (or person(s) acting on behalf of any Stabilisation Manager(s)) in
accordance with all applicable laws and rules.
Any U.S. Person who holds an obligation under this Programme that is treated as in bearer form for
U.S. federal income tax purposes will be subject to limitations under the U.S. income tax laws,
including the limitations provided in Clauses 165(j) and 1287(a) of the U.S. Internal Revenue Code of
1986, as amended.
In this Prospectus, all references to "", "EUR" or "Euro" are to the currency introduced at the start of the
third stage of the European economic and monetary union, and defined in Article 2 of Council Regulation
(EC) No 974/98 of 3 May 1998 on the introduction of the Euro, as amended.
Tranches of Notes may be rated or unrated. Where a tranche of Notes is rated, such rating and the
respective rating agency will be specified in the relevant Final Terms. A rating is not a recommendation to
buy, sell or hold Notes and may be subject to suspension, reduction or withdrawal at any time by the
assigning rating agency.
To the extent not otherwise indicated, the information contained in this Prospectus on the market
environment, market developments, growth rates, market trends and competition in the markets in which the
Issuer or the Guarantors operate is taken from publicly available sources, including, but not limited to, third-
party studies or the Issuer's or the Guarantors' estimates that are also primarily based on data or figures
from publicly available sources. The information from third-party sources that is cited here has been
reproduced accurately. As far as the Issuer is aware and able to ascertain from information published by
such third-party, no facts have been omitted which would render the reproduced information published
inaccurate or misleading.
This Prospectus also contains estimates of market data and information derived from these estimates that
would not be available from publications issued by market research firms or from any other independent
sources. This information is based on the Issuer's or the Guarantors' internal estimates and, as such, may
differ from the estimates made by their competitors or from data collected in the future by market research
firms or other independent sources. To the extent the Issuer derived or summarized the market information
contained in this Prospectus from a number of different studies, an individual study is not cited unless the
respective information can be taken from it directly.
Neither the Issuer nor the Guarantors have independently verified the market data and other information on
which third parties have based their studies or the external sources on which the Issuer's own estimates are
based. Therefore, neither the Issuer nor any of the Guarantors assumes any responsibility for the accuracy
of the information on the market environment, market developments, growth rates, market trends and

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competitive situation presented in this Prospectus from third-party studies or the accuracy of the information
on which the Issuer's and the Guarantors' own estimates are based. Any statements regarding the market
environment, market developments, growth rates, market trends and competitive situation presented in this
Prospectus regarding the Issuer, the Guarantors and their operating divisions contained in this Prospectus
are based on their own estimates and/or analysis unless other sources are specified.

Any websites referred to in this Prospectus are for information purposes only and do not form part of the
Prospectus (except with respect to the documents incorporated by reference into this Prospectus).

FORWARD-LOOKING STATEMENTS
This Prospectus contains certain forward-looking statements. A forward-looking statement is a statement
that does not relate to historical facts and events. They are based on analyses or forecasts of future results
and estimates of amounts not yet determinable or foreseeable. These forward-looking statements are
identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect",
"intend", "may", "plan", "predict", "project", "will" and similar terms and phrases, including references and
assumptions. This applies, in particular, to statements in this Prospectus containing information on future
earning capacity, plans and expectations regarding Eurogrid's and the Guarantors' business and
management, their growth and profitability, and general economic and regulatory conditions and other
factors that affect them.
Forward-looking statements in this Prospectus are based on current estimates and assumptions that the
Issuer and the Guarantors make to the best of their present knowledge. These forward-looking statements
are subject to risks, uncertainties and other factors which could cause actual results, including the Issuer's
and the Guarantors' financial condition and results of operations, to differ materially from and be worse than
results that have expressly or implicitly been assumed or described in these forward-looking statements.
The Issuer's and the Guarantors' business is also subject to a number of risks and uncertainties that could
cause a forward-looking statement, estimate or prediction in this Prospectus to become inaccurate.
Accordingly, investors are strongly advised to read the following sections of this Prospectus: "Risk Factors",
"Business Description of the Issuer" and "Business Description of the Guarantors". These sections include
more detailed descriptions of factors that might have an impact on the Issuer's and the Guarantors' business
and the markets in which they operate.
In light of these risks, uncertainties and assumptions, future events described in this Prospectus may not
occur. In addition, neither the Issuer nor the Guarantors nor the Dealers assume any obligation, except as
required by law, to update any forward-looking statement or to conform these forward-looking statements to
actual events or developments.


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TABLE OF CONTENTS
Page
IMPORTANT NOTICE ...................................................................................................................................... 3
FORWARD-LOOKING STATEMENTS ........................................................................................................... 6
GENERAL DESCRIPTION OF THE PROGRAMME ..................................................................................... 8
RISK FACTORS ................................................................................................................................................ 9
RISKS IN RESPECT OF THE ISSUER AND THE GUARANTORS .............................................................. 9
RISK FACTORS IN RESPECT OF THE NOTES ............................................................................................20
BUSINESS DESCRIPTION OF THE ISSUER ................................................................................................26
BUSINESS DESCRIPTION OF THE GUARANTORS ­ 50HERTZ TRANSMISSION GMBH ...................34
BUSINESS DESCRIPTION OF THE GUARANTORS ­ 50HERTZ OFFSHORE GMBH ............................52
ISSUE PROCEDURES .....................................................................................................................................56
TERMS AND CONDITIONS OF THE NOTES ..............................................................................................58
FORM OF FINAL TERMS ...............................................................................................................................92
GUARANTEE AND NEGATIVE PLEDGE ("GUARANTEE") ...................................................................101
USE OF PROCEEDS ......................................................................................................................................107
WARNING REGARDING TAXATION .........................................................................................................108
SUBSCRIPTION AND SALE ........................................................................................................................109
GENERAL INFORMATION .......................................................................................................................... 114
DOCUMENTS INCORPORATED BY REFERENCE ................................................................................... 116
NAMES AND ADDRESSES .......................................................................................................................... 119



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GENERAL DESCRIPTION OF THE PROGRAMME
Under this 5,000,000,000 Debt Issuance Programme, the Issuer may from time to time issue notes
(the "Notes") to one or more of the Dealers (as defined herein). The maximum aggregate principal amount
of the Notes from time to time outstanding under the Programme will not exceed 5,000,000,000 (or the
equivalent in other currencies at the time of the issue). The Issuer may increase the amount of the
Programme in accordance with the terms of the Dealer Agreement from time to time.
Notes will be issued on a continuous basis in tranches of Notes ("Tranches"), each Tranche consisting of
Notes which are identical in all respects. One or more Tranches, which are expressed to be consolidated
and forming a single series and are identical in all respects, but which may have different issue dates,
interest commencement dates, issue prices and dates for first interest payments may form a series of Notes
("Series"). Further Notes may be issued as part of existing Series. The specific terms of each Tranche will
be set forth in the applicable Final Terms. The Final Terms of Notes listed on the official list of the
Luxembourg Stock Exchange will be displayed on the website of the Luxembourg Stock Exchange
(www.bourse.lu). In the case of Notes listed on any other stock exchange, the Final Terms will be displayed

on the website of the Issuer (https://www.eurogrid.com/de-de/Investor-Relations/Debt-Issuance-
Programme).
The Notes are freely transferable. Notes may be issued at an issue price which is at par or at a discount to,
or premium over, par, as stated in the applicable Final Terms. The yield for Fixed Rate Notes will be
calculated by the use of the ICMA method, which determines the effective interest rate of notes taking into
account accrued interest on a daily basis.
Notes under the Programme may be issued with fixed interest rates or as Notes without periodic payments
of interest (zero coupon).


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RISK FACTORS
The Issuer and the Guarantors believe that the following factors may affect their ability to fulfil their
obligations under the Notes issued under the Programme and under the Guarantee.
Factors which the Issuer and the Guarantors believe may be material for the purpose of assessing the
market risks associated with Notes issued under the Programme are also described below. Many of the
regulatory, environmental, legal and business operational risks to which 50Hertz Transmission GmbH
("50Hertz") is subject may, due to the group structure and contractual obligations between 50Hertz and
50Hertz Offshore GmbH ("50Hertz Offshore"), also have an impact on 50Hertz Offshore. Accordingly,
references below to such risks relating to 50Hertz and its business also apply to 50Hertz Offshore and its
business (as described in "Business Description of the Guarantors - 50Hertz Offshore GmbH").
The Issuer and the Guarantors believe that the factors described below represent the principal risks
inherent in investing in Notes issued under the Programme. The Issuer or the Guarantors may be unable to
pay interest, principal or other amounts on or in connection with Notes issued under the Programme for
other reasons. Prospective investors should also read the detailed information set out elsewhere in this
Prospectus (including any documents incorporated by reference herein) and reach their own views prior to
making any investment decision. Additional risks and uncertainties, including those currently unknown, or
deemed immaterial, could have the effects set forth above.
The risk factors in respect to (i) the Issuer and the Guarantors and (ii) the Notes are presented in categories
depending on their nature with the most material risk factor presented first in each category:
Risks in respect of the Issuer and the Guarantors
Risks related to the Group structure
The Issuer is a holding company with no material operations and relies on its subsidiaries to
provide itself with funds necessary to meet its financial obligations
The Issuer is a holding company with no material, direct operations. The Issuer's principal asset is the
equity interest it holds in 50Hertz. As a result, the Issuer's ability to pay interest on and repay principal of the
Notes and its other indebtedness is dependent upon the operations of its subsidiaries and the distributions,
transfers, advances or other payments of funds the Issuer receives. The Issuer cannot provide any
assurance that it will receive sufficient funds to make payments on the Notes when due. The Issuer's
subsidiaries are separate and distinct legal entities and, except for the Guarantors pursuant to the
Guarantee, they will have no obligation, contingent or otherwise, to pay amounts due under the Notes or to
make any funds available to pay those amounts, whether by dividends, distributions, advances, loans or
other payments. Accordingly, all risk factors that have an impact on the Guarantors have an impact on the
Issuer.
Any decisions made or actions taken within companies in which 50Hertz has minority participation
(and thus no control) may result in higher costs, lower revenues or a lower profit margin concerning
such companies
In the course of its business, 50Hertz engages in economic activities with other companies through
collaborations or joint undertakings, which currently includes minority participations in CORESO SA
("CORESO"), European Energy Exchange AG ("EEX"), Elia Grid International NV/SA ("EGI"), Joint
Allocation Office SA ("JAO") and TSCNET Services GmbH ("TSCNET Services"). As 50Hertz does not
hold a controlling interest in such minority participations 50Hertz cannot ensure that all decisions taken
within such companies are approved by 50Hertz or in its interests. In such cases, the decisions made or
actions taken may result in higher costs, lower revenues or a lower profit margin concerning the minority
participations.

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Risks arising from regulatory, legislative and political matters
Decisions made by the German federal regulatory agency under the current regulatory framework
may have a significant impact on 50Hertz
Almost the entire profit of 50Hertz as a German Transmission System Operator ("TSO") (99 per cent) is
generated from regulated activities via network user charges and surcharges which are subject to regulation
by the German national regulatory authority, the Federal Network Agency (Bundesnetzagentur ­ "BNetzA").
The two main sources of profit from regulated activities are the network user charges for access to and
usage of the 50Hertz onshore transmission system based on an annual revenue cap and the surcharge for
the recovery of costs incurred by 50Hertz due to the obligation to connect offshore windfarms (so-called
Offshore-Netzumlage ­ "Offshore Grid Surcharge"). In addition, 50Hertz receives substantial revenues
from non-profit business under the surcharge for the recovery of costs under the Renewable Energy
Sources Act (Erneuerbare-Energien-Gesetz ­ "EEG") ("EEG Umlage" ­ "EEG Surcharge"). Apart from the
aforementioned surcharges, several other surcharges exist which are, however, of minor relevance for the
revenues of 50Hertz. The decisions made and the actions taken by BNetzA under the current regulatory
framework may have a negative impact on 50Hertz. In particular, such decisions or actions may be based
on false assumptions, defective research or unreasonable efficiency goals and may fail to acknowledge
costs which 50Hertz cannot avoid incurring. BNetzA is under no statutory obligation to ensure the solvency
of a TSO in all circumstances and there is no assurance that revenue limits such as the annual revenue cap
imposed by BNetzA will allow 50Hertz to generate sufficient revenues, thereby allowing the Issuer to meet
its financial obligations (for more information on the tariff-setting mechanism in Germany see section "The
Group's business ­ Tariff setting in Germany").
The determination of and potential changes to the initial level of 50Hertz's revenue cap for a
regulatory period may if the initial level is too low or is reduced negatively impact 50Hertz
The initial level of the revenue cap is determined for a 5-year regulatory period based upon a cost
assessment for a "base" year. This cost base is subject to an efficiency benchmark resulting in an individual
efficiency value (Effizienzwert ­ "Xind") for each TSO. An Xind below hundred per cent means that the
delta to one hundred per cent is considered inefficient. In such case, the TSO has to decrease its initial level
of the revenue cap in five equal yearly steps of 1/5 of the inefficient percentage until the end of the
regulatory period. Furthermore, the initial level of the revenue cap is subject to a yearly adjustment by a
general productivity factor ("Xgen") and an inflation factor as part of the regulation formula.
The cost assessment for a "base" year reviews cost items for onshore assets. The regulatory framework
(i.e. Ordinance on Incentive Regulation Anreizregulierungsverordnung ­ "ARegV") basically classifies some
costs as permanently non-influenceable costs, others as temporarily non-influenceable costs and
influenceable costs. Permanently non-influenceable costs (as regards 50Hertz currently approximately 50
per cent of the costs) are not subject to the adjustment by Xind, Xgen and the inflation factor and, contrary
to temporarily non-influenceable costs and influenceable costs, can be adjusted yearly.
There is a risk that neither the base year costs itself nor the results of the costs assessment of the applied
costs provide a sufficient basis for the cost coverage in the following regulatory period.
The initial level of the revenue cap for the current third regulatory period came into effect in 2019, based on
approved costs of the base year 2016 and will expire in 2023.
With decision of 21 January 2019, BNetzA decided on the initial level of 50Hertz' revenue cap for the third
regulatory period (cf. BK8-17/0450-11). 50Hertz appealed against BNetzA's decision regarding the revenue
cap in front of the Higher Regional Court Dusseldorf (Oberlandesgericht Düsseldorf ­ "OLG Düsseldorf")
(cf. VI-3 Kart 702/19 [V]). Subject of the appeal is that when reviewing 50Hertz' cost base BNetzA cut back
a substantial part of the current assets (Umlaufvermögen) which resulted from the EEG-Umlage. While
BNetzA accepted this position when determining the initial level of 50Hertz' revenue cap for the first and the
second regulatory period, BNetzA now changed its practice and declined this position to 50Hertz'
disadvantage regarding the initial level of revenue cap for the third regulatory period. For the third regulatory
period an interim solution was agreed with BNetzA covering fifty (50) per cent of the economic effect.

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