Based on rules given in the Control Regulations(in Norwegian), Statnett has developed a tariff model that describes how we calculate how much each customer should pay in tariff/grid rent to the transmission network each year.
The design of the tariff should contribute to the efficient development and utilization of the grid.
Revenue framework determines annual income
RME sets an annual limit on how much revenue each grid company can collect. The annual framework is called allowed income, and RME bases this on Statnett’s actual (booked) costs for operating the grid when setting this revenue ceiling.
This includes operating and maintenance costs, system operation costs, as well as depreciation and yield on grid capital.
Tariff model – distinguishes between production and consumption
Statnett has developed a tariff model that describes how we determine how much grid tariffs we should collect from grid companies and our direct customers.
RME ensures that the model complies with the regulations. Find this years tariff.
The tariff rates for the fixed part are generally set for one year at a time, and Statnett must publish the tariffs for the coming year before October 1.
When setting tariff rates, we distinguish between production and consumption:
Producers are tariffed based on how much power they deliver to the grid. The tariff rate for production (feed-in tariff) is therefore given in øre/kWh. The tariff basis is “average annual production over the last 10 years”. EU regulations have set a cap on the feed-in tariff at 1.2 €/MWh. The tariff rate for producers will therefore be the same from year to year regardless of whether our revenue cap increases.
Consumption is tariffed based on how much power they take out during the peak load hour. The tariff rate for consumption is therefore given in NOK/kW. The peak load hour is the hour of the year with the highest consumption. The tariff basis for consumption is the average withdrawal during the peak load hour over the last 5 years. The consumption tariff will increase when our revenue cap increases.
Grid rent from the energy part
The energy part is a usage-dependent part that should reflect the system load each customer imposes on the grid when they withdraw or feed in power. The energy part is calculated based on the actual energy delivered to the grid or withdrawn from the grid hour by hour at each point of connection.
The system load is reflected through unique marginal loss rates calculated for each exchange point in the transmission grid. Separate marginal loss rates are calculated for daytime, night-time and weekends.
The marginal loss rates are published on Statnett’s website and distributed to our customers on Friday before the new week starts. The rates can be found on Nettweb.
Income from congestion revenue
Congestion revenues are revenues that arise when power is transferred between bidding zones with different electricity prices. This can either be exchange via interconnectors or between bidding zones in Norway.
The revenues from interconnectors are shared 50/50 between Statnett (the responsible transmission grid company in Norway) and the responsible transmission grid company on the other side of the interconnector.
The congestion revenues that accrue to Statnett are passed on to our customers through a reduction in the tariff (grid rent).