EnergyValuation
Valuing municipal utilities and energy grids
In a utility sale or concession change, the counterparty brings its own figure. A reasoned value grounds the negotiation. We determine it under IDW S 1, grid regulation included.
Valuation report
SampleBusiness and grid value
Section 2(3) no. 1 WPO
- Occasion
- sale, stake or concession change
- Standard
- IDW S 1, with sensitivities
Wirtschaftsprüfer
When a concession changes, each side works with its own figure
When the grid goes to a new operator, the objectified earnings value counts. A reasoned value gives the negotiation a basis you can rely on and the other side can follow.
- MunicipalityWhat is appropriate?
- Outgoing operatorWhat do I receive?
- Incoming operatorWhat do I pay?
Objectified earnings value of the grid Section 46(2) sent. 4 EnWG
Where we come in on concession and transaction
- Clarify the occasionEnd of concession, sale, holding or purchase price allocation.
- Provide dataGrid data, revenue caps, plans and contracts.
- Determine the valueEarnings value or DCF, with regulation in the model.
- NegotiateWith a value boards can rely on.
Who stands behind your valuation report
- Registered audit firm, member of the IDW (opens in a new tab)Listed with the Chamber of Public Accountants. The German Public Accountant you talk to signs.
- Specialised in energy and sustainabilityAudits for the special equalisation scheme and carbon cost compensation. We developed a green electricity audit programme and audit the suppliers of ZF Friedrichshafen AG worldwide.
- Big Four backgroundWe learned auditing at Big Four firms, over ten years in financial statement and sustainability audits.
“[…] I particularly value the pragmatic, solution-oriented approach and the high professional standard. […]”
What municipalities and utilities want to settle first
Which value applies when a grid is taken over after a concession change?
The objectified earnings value, based on achievable revenues (section 46(2) sentence 4 EnWG). The parties may agree a different basis.
In which role do you value the grid?
One per matter, set in the engagement. As a neutral expert we determine the objectified earnings value, independent of the parties' own views, and every party can follow how we reached it. As an adviser we work for the municipality or one concessionaire. As an expert determiner or mediator we bring the parties' views to a settlement value (IDW S 1).
Can you prepare the purchase price allocation for a company whose accounts you audit?
No, where it affects the audited accounts more than immaterially (section 319(3) sentence 1 no. 3(d) HGB). Then another auditor takes it on.
Since when has the law set the earnings value for grid compensation?
Since 3 February 2017. Section 46(2) EnWG has since provided that the objectified earnings value, measured by the achievable revenues, governs appropriate compensation. A differently agreed compensation remains possible.
How much lead time does a grid valuation need before the concession ends?
Concession contracts run for at most 20 years, and the municipality announces the end at least two years in advance in the Federal Gazette (section 46(2), (3) EnWG). Grid data, valuation and negotiation fit into those two years.
Which valuation standard applies today?
IDW S 1 in its 2026 version, adopted on 11 February 2026. It applies to valuation dates after its publication, to earlier dates only if expressly agreed. Earnings value and DCF methods remain recognised.
What does a grid or company valuation cost?
The fee depends on scope and effort. We give you the range after the intro call, and the fee is set out in writing in the engagement letter.
Intro call, 25 minutes
Before a sale or concession change, value first
Tell us the occasion and the timeline. In the intro call we clarify which value is needed; the aim is a valuation that stands up.
- Describe occasion and deadline
- Clarify what your occasion requires
- Learn scope, timeline and fee range
Helpful: the occasion, the timeline and the latest annual accounts.
You always speak with a German Public Accountant who knows the field.Free of charge, no obligation, via Microsoft Teams.
Prefer email or phone?
A reply to every e-mail within 48 hours on working days. If it is urgent, say so and we will answer as soon as we can.
What comes up besides the valuation
- Grid operators and utilities
If the annual certificates for the grid or utility are due.
- Trust services and executorship
If, in a sale, the price is to sit with a neutral third party until closing.
- Business valuation
If the company to be valued is not a utility.