The f-factor
Article 23
1. When applying the economic test referred to in Article 22, the national regulatory authority shall set the level of the f-factor for a given offer level, taking into account the following: (a) the amount of technical capacity set aside in accordance with Article 8(8) and (9); (b) positive externalities of the incremental capacity project on the market or the transmission network, or both; (c) the duration of binding commitments of network users for contracting capacity compared to the economic life of the asset; (d) the extent to which the demand for the capacity established in the incremental capacity project can be expected to continue after the end of the time horizon used in the economic test. 2. If the economic test has a positive outcome then the investment costs associated with the incremental capacity shall be reflected in an increase in the allowed or target revenue in accordance with the applicable national rules.