In the matrix above the regulator determines the Greek risk free rate for year 2015 up to 1,4% but as can be seen below the relevant risk free rate for Greece is trending for the late 5years in the levels of 7,5%, while for US 2,3% and for Germany’s 1%, a spread of up to 5% before the calculation of risk free premium on the stock market.
Worths to read below the wording that tries to explain why the German risk free rate was taken instead of the Greek:
Its very interesting that they notice a strong downward trend in Greek bond market!!
If we go back to year 2012, the Greek regulator for the relevant gas transmission network and its tarrifs determines the risk free rate for the gas operator up to 0,63%
Ultimately the electricity WACC before tax at 2015 prices is estimated 11,1% while the same for 2012 10,99% for the case of gas. Let’s now see the inflationary difference among 2012 and 2014 in the graph below:
Its actually deflation since after a year the rate goes close to zero ams than passes to negatives. But the rates kept actually the same!
Petros Theodorou Lectures 