Regulated asset base and its impact on the profit of energy commodity distributors

Regulovaná báze aktiv a její vliv na zisk distributorů energetických komodit

Jakub Mašek and Radana Šmídová

Oceňování, 2021, vol. 14, issue 1, 47-64

Abstract: The article addresses the topic of profit calculation of companies involved in the energy distribution sector. These companies naturally have a monopoly position and therefore the price of their distribution services (including level of profit) is set by the central regulatory authority. Mainly to prevent the existence of market inefficiencies. The article then describes the mechanism of profit calculation using regulatory asset base and application of weight average cost of capital that shall ensure appropriate profit level guaranteeing a return on investments to distribution infrastructure. The last part composes of the financial analysis of selected distribution companies.

Keywords: Regulated asset base; Distribution; WACC; Regulovaná báze aktiv; Distribuce (search for similar items in EconPapers)
JEL-codes: G39 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.18267/j.ocenovani.259

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