Sparks - EYDAP

EYDAP has announced that the Waste, Energy and Water Regulatory Authority (RAWEW) has approved new water supply and sewage tariffs for the first regulatory period of 2025–29. The approved tariffs will enable annual revenue increases averaging €78.3m from 2026 onwards, compared to 2024.

What’s going on here?

RAWEW has approved recovery of EYDAP’s financial cost, comprising operating costs, depreciation and a 6.24% return on capital employed. Total approved financial cost rises from €376m in 2025 to €416m by 2029, according to EYDAP. The new tariff comes into effect from 1 January 2026 until 31 December 2029. The gradual increase reflects the inclusion of new investments in employed capital and higher depreciation charges.

What does this mean?

The approved tariff structure provides revenue certainty through 2029. This regulatory framework establishes a clear mechanism for EYDAP to recover its costs and earn a defined return over the five-year period. The approved 6.24% weighted average cost of capital offers a regulated return on the company’s capital base, while the €78.3m average annual revenue uplift from 2026 supports earnings growth.

Why should I care?

For investors, this decision provides visibility on EYDAP’s revenue trajectory through 2029. The five-year regulatory period reduces near-term uncertainty around tariff-setting. Separately, the company is reviewing certain historical cost recovery matters and will update investors on any further developments.