1. METHODOLOGY FOR THE CALCULATION OF DISCOUNTED NET REVENUES Expert Group Meeting, 12 December 2013

2. E MPOWERMENT Article 61 (3) (b) of the CPR refers to: /…/"Calculation of discounted net revenue of the operation, taking into account the reference period appropriate to the sector or subsector applicable to the operation, the profitability normally expected of the category of investment concerned, application of the polluter-pays principle and, if appropriate, considerations of equity linked to the relative prosperity of the Member State or region concerned'.

3. CHANGES IN COMPARISON TO THE FICHE 19 PRESENTED ON 26 SEPTEMBER References to 'funding gap' are taken out (incl. Annex 2) in order specify the eligible expenditures of revenue generating operations Following the empowerment under Article 61 (3), Article 15 less explicit: Discounted net revenues determined by revenues, costs, residual value, polluter pays and full cost recovery principle and reference period Article 61(2) explains already the need for the relevant reduction-no further empowerment on the calculation of funding gap under 61(3) Calculation of Revenues: Non eligible VAT=>revenues based on figures excluding VAT Transfers from state or regional budgets or national public insurance system explicitly excluded from revenue calculation

4. CHANGES IN COMPARISON TO THE FICHE 19 PRESENTED ON 26 SEPTEMBER Calculation of cost: Reference to replacement of short-life machineries and equipment has been taken out- as covered already by 'replacement costs to assure the technical functioning of the operation'- avoids an explicit definition of s'short-life machineries and equipment that is not exisiting so far in the regulatory references In analogy to the article on the calculation of revenues: VAT to be excluded from cost calculation if not eligible Residual value remains as proposed in fiche 19 'by computing the net present value of cash flows in the remaining life-years of the project')

5. CHANGES IN COMPARISON TO THE FICHE 19 PRESENTED ON 26 SEPTEMBER Discounted cash flow: clerical changes justification for <> 4% benchmark + consistent application across similar operations in the same country or sector Reference periode: Annex I adapted sectors: industry replaced business infrastructure No exceptions from the general rule but other sectors with a reference period of 10-15 years included in Annex I Applicable principles for tariff setting summerized in on sentence