Op-Ed: “Profit as a Right? The Direct Effect of Incentives in Regulated Energy Services: Gaso and Conexus Baltic Grid (C-87/24)”

On 23 October 2025, the Court of Justice ruled, in Gaso and Conexus Baltic Grid (C-87/24), that tariffs for natural gas must ensure a more than minimal profit margin and other incentives to achieve the single market for natural gas. One of the aims of calculating the rate of return on capital under Directive 2009/73 is to find a level of profit that can motivate shareholders to maintain and replenish the fixed assets of the regulated company, and further market integration, security of supply, and investment in research and development. The dispute in Latvia arose due to many technical issues raised by the calculation of the profit in the tariffs for services related to natural gas.

The Dispute in the Main Proceedings

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