0% found this document useful (0 votes)
37 views12 pages

Tariff Booklet 2025

The document outlines the transmission grid tariffs for 2025, detailing the structure and calculation methods for both consumption and production tariffs. It specifies the basic principles for determining tariff rates, which are set by the Norwegian Energy Regulatory Authority, and includes information on fixed and variable components of the tariffs. Additionally, it describes the tariff model, including adjustments for large consumers and the handling of reactive power tariffs.

Uploaded by

Aditya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
37 views12 pages

Tariff Booklet 2025

The document outlines the transmission grid tariffs for 2025, detailing the structure and calculation methods for both consumption and production tariffs. It specifies the basic principles for determining tariff rates, which are set by the Norwegian Energy Regulatory Authority, and includes information on fixed and variable components of the tariffs. Additionally, it describes the tariff model, including adjustments for large consumers and the handling of reactive power tariffs.

Uploaded by

Aditya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 12

Åpen informasjon / Public information

Transmission grid tariffs for 2025


Model description and rates

Foto: Per Einar Olsen


Åpen informasjon / Public information

Tariffs 2025
Tariff rates for 2025 apply from 1 January 2025 until 31 December 2025.

Basic principles for determining tariff rates


Tariffs shall be structured in accordance with regulations set out in the Norwegian Water
Resources and Energy Directorate (NVE) FOR 1999-03-11 no. 302 Regulations governing
financial and technical reporting, income caps for network operations and transmission tariffs.

The Norwegian Energy Regulatory Authority (NVE-RME) is the national regulator for the
Norwegian electricity and downstream gas market. NVE-RME sets an annual income cap that
represent the amount of revenue Statnett can collect to cover costs for investment and operation
of grid facilities, system operation and transmission losses.

The income cap is collected through tariffs from


customers, divided between energy component (cost of
loss) and a fixed component, as well as from
congestion revenues (bottleneck income). Congestion
revenues are revenues that occur when power is
transferred between price areas with different prices
(bottlenecks) in the power marked. The congestion
revenues are divided 50/50 between the Transmission
System Operators (TSO) “on each side of the
bottleneck”.

The structure of the tariff is intended contribute to the


efficient development and utilisation of the network.
Based on current regulations, a model has been
developed to calculate the size of the payment from each customer and customer group. The
structure and changes in the tariff model are discussed with consumer organisations and adopted
by Statnett’s Board of Directors.

Tariff income from customers, together with bottleneck income, shall correspond to Statnett's
regulated income (income cap). The discrepancy between actual income and regulated income is
called surplus / deficit income. Through the determination of annual tariff rates, Statnett shall
control the balance of surplus / deficit income towards zero. At the end of 2023, the transmission
network has a book accumulated surplus income of NOK 3 billion.

The annual tariff rates must be published no later than 30 September of the year before the
business year. Then neither income cap, bottleneck income nor income from energy components
for the business year is known. The annual tariff rates must therefore be based on forecasts for
these elements. After the tariff year, figures for these elements will be known. Deviations
between actual figures and forecast figures will be included in the balance surplus / deficit
income and will be considered when determining tariffs in recent years.
Åpen informasjon / Public information

Description of the tariff model


The tariff model describes how the income cap for the transmission grid is to be distributed
between the customers connected to it. The model is designed in accordance with the Norwegian
regulations for tariffing.

The regulations set several requirements for the structure of tariffs, including:
• Tariffs should signal effective utilisation and development of the network
• Any differentiation of the tariff between customer groups shall take place based on
objective and verifiable network conditions
• Total tariff revenues shall not exceed the income cap of the TSO.

Tariff components
The transmission network tariff consists of a variable component (cost of loss) and a fixed
component.

The energy component (cost of loss)


The energy component reflects the load each customer puts on the network system when
drawing power from it or feeding power into it. The energy component is calculated based on the
actual energy fed into or drawn from the network hour by hour.

System load is reflected through unique margin loss rates calculated for each connection point in
the transmission grid. Separate marginal loss rates are calculated for daytime, night time and
weekends. Daytime is defined as workdays between 6 a.m. and10 p.m.
The calculations are based on projected load flows in the Nordic network. The marginal loss rate
is symmetric around zero for feeding and drawing power at each individual connection point.
The marginal loss rates are administratively restricted to 15 per cent.

The marginal loss rates are published on Statnett’s website and distributed to our customers on
Fridays before the start of a new week. The rates are available on NettWeb (statnett.no). (Norwegian
pages only). When calculating the energy component, the price for the relevant price area is used.

Fixed components
The tariff’s fixed components are intended to ensure that the TSO can generate its total income
cap. Cost allocation and differentiation between customer groups must take place in accordance
with network-based, objective and non-discriminatory criteria.

When determining the fixed tariff component, a distinction is made between feed in
(generation/production) and drawing (load/consumption).

The fixed component for producers (feed in tariff) is energy-based. (MWh).


The feed-in tariff rate for 2025 is set at NOK 19.8 / MWh, of which NOK 6.0 / MWh comprises
related system operating costs.

The fixed component for consumers is power based (MW). The tariff for consumption is set at
NOK 270 / kW for 2025.
Åpen informasjon / Public information

Production tariffs
Basis for calculation
The production tariff is calculated based on average annual production for the last 10 years.
(GWh). Tariffs for 2025 are based on data for the period 2014–2023.

The basis for calculating the production tariff is referred to as “ex-power station”, i.e. produced
volume less the power station’s consumption and step-up transformation. For pumped-storage
hydropower plants, gross production will be included in the basis for calculation.

The data set has been established based on reported annual values from the individual producer
or customer in the transmission network. The data is automatically retrieved from submitted
values.

New production units


New production units that will feed in transmission or regional networks will lack historical data.
For such units, the expected annual production stated in their operating licence is used as the
basis for calculating the production tariff for the start-up year and the following two calendar
years. Subsequently, actual production data will be used to calculate the production tariff.

New production units will be charged from the month in which they start up. Information about
new units must be submitted to Statnett as early as possible before start-up.
Wind farms are usually constructed in stages. The basis for calculating the production tariff in
the first few years must therefore be agreed separately for each wind farm.

Surcharge for coverage of system operating costs


The feed-in tariff includes a surcharge for system operating costs from 2014 onwards.
The surcharge for 2025 will be NOK 6.0/MWh. The rate in 2024 was NOK 2.5/MWh.

Consistent feed-in tariff


The transmission network's feed-in tariff shall be used at all grid levels. This means that the
power-producer must pay the same feed-in tariff regardless of whether the power is fed directly
into the transmission network or whether it is fed via high voltage (HV) and low voltage (LV)
distribution networks.
Revenue from feed-in tariff to the high voltage distribution network shall be transferred to
overlying networks (i.e., the transmission network), while revenues feed-in tariff to the low
voltage distribution network shall be used to cover costs in the low voltage distribution network.
Åpen informasjon / Public information

Consumption tariffs
Basis for calculation
The consumption tariff is calculated based on the customer’s power consumption (MW) during
the system’s peak hour. A description of “peak hour” is available at Topplasttimer | Statnett
(Norwegian pages only).
Power consumption is calculated for each connection point in the transmission network. The
calculation is made by taking measured net power exchange during the peak load hour corrected
for production during the peak load hour (Pp). All exchange data (net MW in/out) is
automatically retrieved from meters connected to the system, while all production facilities must
report production during peak load (Pp) behind each connection point.
The consumption tariff is calculated based on average consumption (MW) during the peak load
hour over the last 5 years. The years 2020–24 form the basis of the tariff for 2025.
Establishment of new consumption or significant change in existing
consumption
In the event of the establishment of a new large individual consumption or in the event of
significant and permanent changes in consumption within the five-year period, Statnett shall be
notified well in advance. Statnett will, in consultation with the customer, find a representative
settlement basis for consumption. The settlement basis will be corrected from the month new /
changed business is established. Corrected settlement basis will be set as a peak load for the last
5 years.
Consumption co-localised with power production (k-factor adjustment)
The consumption tariff is reduced for connection points where power is also fed in into the
network. The adjustment is made using a correction factor (k-factor). The size of the correction
factor depends on the ratio between feed-in and consumption at the connection point. A limit for
how low the k-factor at one connection point may be is set to 0.6. The maximum reduction
resulting from co-localisation is thus 40 per cent.

A k-factor is calculated for each connection point in the transmission network. The calculated k-
factor for a connection point is used to adjust the amount charged for all consumption at that
connection point, regardless of whether it is defined as high consumption, other consumption or
flexible consumption.

The k-factor is calculated using the following formula:

𝐹𝑠𝑡𝑜𝑡
k= , 𝑖𝑓 𝑡ℎ𝑒 𝑓𝑜𝑟𝑚𝑢𝑙𝑎 𝑔𝑖𝑣𝑒𝑠 𝑘 < 0,6, 𝑘 𝑖𝑠 𝑠𝑒𝑡 𝑡𝑜 0,6
𝑃𝑡 + 𝐹𝑠𝑡𝑜𝑡

Fstot: Total of all customers’ average consumption at the connection point in MWh/h during the peak load hour over the
previous 5 years.
Pt: Total available winter output at the point.
Available winter output (Pt)
• Hydropower plants: The highest output that can be produced during a continuous 6-hour period
under highest winter consumption. Normal water flows for run-of-river power stations and normal
reservoir levels for reservoir-based power stations are assumed, both in reference to the third week
of the year.
• Wind farms: 25 per cent of installed capacity
• Thermal power stations: 100 per cent of installed capacity
Åpen informasjon / Public information

Tariff groups – consumption


When tariffing consumption, a distinction is made between large consumption and other
consumption.
Large consumption is individual companies with power consumption over 15 MW and annual
energy consumption over 100 GWh.

The structure and calculation of tariffs for the individual groups are described in more detail
below.

Tariffs for other consumption


Other consumption includes all consumption (withdrawals from the network) that is not included
in the definition of large consumption.

The tariff basis for other consumption is the average power consumption during the peak load
hour per connection point over the last 5 years, multiplied by the k-factor of that point.

Annual cost is calculated using the following formula:

Average consumption during peak load (MW) * k-factor


for the connection point * tariff rate for consumption

The customer’s basis for calculation and cost per year are displayed on the login page at
NettWeb. (Norwegian pages only)
Åpen informasjon / Public information

Tariffs for large consumption


Large individually consumption pays a lower tariff rate to the transmission network than other
consumption. Differentiation of tariffs between network customers is accepted according to the
legal regulations. The differentiation must be based on "objective, non-discriminatory criteria".

All individual companies that fall within the scheme (15 MW / 100 GWh) will achieve equal
tariff reduction (%) in relation to other consumption. The tariff reduction is set at 50%.

Definition of large consumption


Individual customers with power consumption larger than 15 MW/h and with an annual
consumption of more than 100 GWh qualify for a reduced tariff.
In this context, individual customer means a company that has the same registration number and
is located at the same site. The facility may draw power from several connection points in the
central network, but it must be at one site or one “production line”. Industrial parks, etc., are
therefore not included in the definition of large consumption.

Registration of facilities that qualify for a reduced tariff


In order to qualify for the large consumption tariff, the customer must ensure that all relevant
facilities are always registered in Statnett’s billing system. In this context, customer means large
individual consumers directly connected to the transmission network or regional networks with
large single consumers connected to their networks.

Information about new facilities, along with the required documentation, must be sent to Statnett
by e-mail.

Establishment of new consumption or significant change in existing


consumption
New plants with expected consumption above 15 MW / 100 GWh will be tariffed from the
month they start up. New large consumption will be settled in the start-up year based on an
agreed forecast for energy consumption and the customer's maximum power consumption. Then
the top load data from the last available year is used. For each year thereafter, one and one year
is added to the average until there is an average based on 5 years of peak load data.

Change in existing large consumption


In the event of a significant and permanent change in consumption for existing facilities, Statnett
must be notified well in advance. Statnett will, in consultation with the customer, clarify a new
and representative settlement basis. The settlement basis will be corrected from the month the
change in the business is established.

Change in consumption which means that the customer no longer qualifies for
a reduced tariff
In the event of changes that indicate that expected consumption will be below 15 MW / 100
GWh over a longer period, the right to a reduced tariff will lapse with immediate effect.
The customer must notify Statnett of significant changes in energy / power consumption. Statnett
will, in consultation with the customer, clarify and adjust the settlement basis with effect from
the relevant time.
Åpen informasjon / Public information

Basis for calculating fixed tariff for large consumption connected to


transmission network
The basis for the fixed tariff for large single consumers is calculated in the same way as for other
consumption, i.e., based on the customer's power output in the system's peak load. Settlement
basis 2025 is calculated based on peak load data for the years 2020-2024.

Basis for calculating fixed tariff for large consumption connected to


distribution network
Network companies that have large individual consumers connected to their network must report
on special codes to Statnett or ensure that Statnett has access to the hourly values via Elhub.

Customers that have electric boilers or recycling plants


The basis for calculating the fixed tariff components for 2025 is the customer's power
consumption during the system’s peak load for the years 2020–2024.

• For customers with electric boilers, measured power consumption (MW) will include
consumption for electric boilers.
• For customers with recycling plants, measured power consumption (MW) will be
deducted from own production.

The owner of a recycling plant is not considered a producer and consequently does not pay a
feed-in tariff.

Calculation of annual tariff costs for large consumers


Annual tariff costs are calculated using the customer’s tariff basis (MW) multiplied by the tariff
rate for large consumers.

The tariff basis for large consumption is the average power consumption during the peak load
hour per connection point over the last 5 years, multiplied by the k-factor of that point.
The tariff rate for large consumers will be 50 per cent of the fixed tariff for consumption for the
actual year.

Annual cost is calculated using the following formula:

Average consumption during peak load (MW) *k-factor for the connection point * (tariff rate for
consumption*0,5)

The basis for calculating the customer’s consumption, individual reduction and total cost per
year are displayed on the login page at NettWeb. (Norwegian pages only)
Åpen informasjon / Public information

Tariffs for reactive power


Withdrawal of reactive power can be a problem for the operation of the transmission network.
Tariffing of reactive power shall contribute to the installation of compensation systems where
there is a need for this.

Settlement basis reactive effect


For each quarter, the 90th percentile of the reactive exchange is calculated. The settlement basis
is set at the highest quarterly 90th percentile. By using this methodology, it is ensured that the
customer is held responsible for the level of reactive withdrawal for which they are responsible.

Invoicing of reactive effect


Based on hourly values, the 90th percentile is calculated from the quarter's measured reactive
exchange. This will form the basis for quarterly invoicing. Invoicing in the previous quarter will
be considered if the later quarter shows higher withdrawals. This means that only excess
withdrawals from previous invoice bases will be tariffed. See example below:

Quarter 90-persentil Basis Basis for quarterly Comments


invoice
Q1 20 20 20-10 = 10 10 MVAr is included in
general tariffs
Q2 50 50-20 = 30 30 Excess withdrawals ir. Q1
Q3 45 0 0 Withdrawals lower than Q2
Q4 30 0 0 Withdrawals lower than Q2

Other guidelines for tariffing reactive exchanges are:


• It shall be measured at all exchange points towards the transmission network.
• Where customers operate a coherent network, we will look at the customer's net
exchange.
• Pure production points are not tariffed.
• A deduction of 10 MVAr is made on the invoice basis which will be included in the
general tariffs. For continuous networks, 15 MVAr has been deducted.

In the case of long-term connection images where Statnett, as system manager, imposes a higher
reactive withdrawal on customers than 10 MVAr (15 MVAr for continuous networks), the
customer is asked to contact Statnett for a revised settlement basis.
Åpen informasjon / Public information

Miscellaneous
Billing
• The energy component is invoiced weekly
• Fixed tariff components are invoiced monthly
• Reactive power is invoiced quarterly

Deadline for reporting and controlling billing data


The fixed tariff components are based on several data (annual production, power consumption
during peak load, annual power consumption etc.). The data is retrieved automatically where
possible and through separate reporting from customers.

Settlement data per customer will at all times appear on the customer portal Nettweb.
(Norwegian sites only)
Settlement data must be posted on the customer portal no later than 1 October of the previous
year.
Åpen informasjon / Public information

Tariff rates for 2025

The energy component


The energy component is the product of the applicable margin loss rate, area price and net
consumption/feed-in at the relevant exchange point hour by hour.
As a result of very high power prices with high energy costs for consumers, a ceiling has been
set on the power price that forms the basis for calculating the energy component. The ceiling
should not be set lower than 35 øre/kWh.
This has a duration until the end of 2025.

Energy component (NOK) = area price (NOK/MWh) * margin loss rate (%) * energy
consumption/feed-in (MWh)

Margin loss rates are calculated weekly. These are distributed and posted on Statnett’s website
by Friday at 12 noon of the week before the new rates are applicable.

Fixed components
The 2024 tariff rates for fixed components are as follows:

Tariffs 2025
Consumption NOK 270/kW
Tariff reduction for large consumption 50%
Producers - Feed-in tariff NOK 13,8/MWh
Producers - Surcharge for system services (production) NOK 6,0/MWh
Reactive power > 10 MVAr (15 MVAr for continuous networks) NOK 40/kVAr
Åpen informasjon / Public information

Postal address:
P.O. Box 4904 Nydalen
NO-0423 OSLO, NORWAY

Office address:
Nydalen Allé 33
NO-0484 OSLO, NORWAY

Tel: +47 23 90 30 00
E-mail: firmapost@statnett.no

Contact address Tariffs/Billing:


nettavregning@statnett.no

You might also like