50Hertz has a "natural monopoly" with its transmission grid in its grid area, i.e., in northern and eastern Germany the Company is the sole operator of the extra-high-voltage electricity grid in its grid area, as competitors operating such a grid does not make any economic sense. 50Hertz is therefore subject to regulatory oversight by the national regulatory body, the Federal Network Agency. The regulatory system has a substantial impact on the business model. The Federal Network Agency also sets the annual revenue cap, upon which the network user charges for 50Hertz are based. As part of the European Elia Group, 50Hertz is convinced that interconnectors, especially those that connect offshore wind farms across borders, are necessary for achieving the targets of the European Green Deal. In view of the enormous volume of electricity required to decarbonise our societies, Europe must exploit all potential for generating electricity from renewable energy and in some cases generated this electricity a long way off the coasts of its member states. 50Hertz operates the world’s first hybrid offshore interconnector Kriegers Flag Combined Grid Solution (CGS). The Combined Grid Solution (CGS) connects two transmission substation platforms in the Baltic Sea to each other as well as to the existing onshore connections of the offshore wind farms. As a result, the CGS transfers offshore wind power to Denmark or Germany and can also be used for cross-border energy trading. In addition to our activity as a transmission system operator, we offer via our subsidiary Elia Grid International (EGI) various advisory services for international customers that, amongst other things, improve the increasing integration of renewable energy, also in a number of other countries.