Regulation on financial and technical reporting, income for network operations and tariffs
Date FOR 1999-03-11-302
Ministry MPE
Published In 1999 863
Commencement 01/04/1999
Edited
FOR 2015-07-01-850 from 07.01.2016, FOR-2015-12-04-1408 from 01/01/2016
Changes
For
Norway
Legal
LOV-1990-06-29-50-10-6, TO-1990-12-07-959-§9-1
Promulgated
Corrected 24.08.2016 (§ 9-2 first paragraph, table head)
Short Title
Regulations concerning control of network operations
Chapter Overview:
Part I. (§§ 1-1 - 1-4)
Part II. Financial and technical reporting (§§ 2-1 - 5-5 - § 5-6)
Part III. Interruption Reporting
Part IV. Revenues for network operations (§§ 7.1 - 12.3)
Part V. Tariffs (§§ 13.1 - 17.7)
Part VI. Other provisions (§§ 18-1 - 18-6)
Adopted by Norwegian Water Resources and Energy Directorate on 11 March 1999 pursuant to regulation 7 December 1990 no. 959 on the production, conversion, transmission, trading, distribution and use of energy etc. (Energy Act) § 9-1 cf. Act of 29 June 1990 no. 50 on the production, conversion, transmission, trading, distribution and use of energy etc. (energy Act) § 10-6.
Changes: Amended by regulations 15 Dec 1999 no. 1286, 13 Dec. 2000 No.. 1255, 16 October 2001 No.. 1394 17 Dec 2001 no. 1486, October 11, 2002 No.. 1123, 16 Dec. 2002 No.. 1611 12 Dec 2003 no. 1502, 5 Dec 2005 no. 1470, October 18, 2006 No.. 1171, 14 Dec 2006 no. 1413, 7 Dec 2007 no. 1423, 15 Dec 2008 no. 1358, 5 June 2009 No.. 616, 10 November 2009 No.. 1365 June 15, 2010 no. 984, 15 Dec 2008 no. 1358, 5 June 2009 No.. 616, 4 Dec 2012 no. 1137 as amended by regulation 17 Dec 2012 No.. 1250 16 Dec 2013 No.. 1576 , 10 Dec 2014 No.. 1554, 4 Dec 2012 no. 1137, 16 Dec 2013 No.. 1576, 10 Dec 2014 No.. 1554, July 1, 2015 No.. 850, 4 Dec 2015 no. 1408, July 1, 2015 No.. 850.
Changes in regulations April 29, 2016 No.. 456 (effective January 1, 2017).
Corrections: 26/01/2010 (authority), 08/24/2016 (§ 9-2 first paragraph, table head).
Part I.
Chapter 1. Introductory provisions
§ 1-1. Purpose This regulation will provide the basis for an efficient power market and control of network operations as a natural monopoly. Regulations to ensure that power is transferred to the correct supply and price, the net is used and expanded in a safe and socially efficient manner. Includes taking into account public and private interests are affected.
§ 1-2. These regulations apply economic conditions on the sale of network services and reporting of economic and technical data on power generation, power sales, network operations and other operations for reportable companies.
§ 1-3. Definitions In this regulation:
Plant contributions: Estimated investment grant by connection of a new customer or by reinforcement of the network to an existing customer.
Return: Operating profit in relation to yield basis. Operating profit is given by annual revenue for its own network less costs on its own network.
Figure used: The average of the opening and closing balances of invested net assets, plus 1 percent of net working capital. Invested network capital is given at initial historical cost. Share of common assets are included.
Distribution: Transmission networks with nominal voltages up to 22 kV, unless otherwise provided.
Shared Web: Web Site with minimum common tariff, metering and billing. A common network consists of equipment from several network companies, and responsible for the public network designated operator.
Concessionaire: Holder of a trading license.
Customer group: A finite group of end users, defined on the basis of similarities in life, supply and consumption levels.
Customer Specific costs: Costs related to customer relationship management, including metering, settlement, billing, supervision, etc..
Marginal loss costs: Change in loss costs in the network at a marginal change in input or withdrawal.
Marginal loss rate: Percentage change in transmission losses by a marginal change in input or withdrawal.
Network companies: Concessionaire who owns transmission grids or are responsible for network services.
Network services: includes one or more of the following:
A)
transfer of power, including operation, maintenance and investment in grid infrastructure
B)
tariffing
C)
metering, settlement and customer handling
D)
supervision and security
E)
operational coordination
F)
imposed emergency
G)
imposed energy report.
Regional grid: Transmission networks between main grid and distribution network.
Main Grid: Construction on the transmission system at voltage level of 132 kV or higher and which are defined as facilities in the Main Grid.
Tariffs: The tariffs understood all prices and other financial compensation by the licensee establishes for connection to and use of electric grid facilities.
Connection point: Point in the transmission in which there is input or output of power or exchange between operator.
Interruptible consumption: Consumption which can be switched off by order of the network company.
Other activities: All activities not covered by power generation, power sales, network or telecommunications business; including district heating, street lighting, installation, cable tv, energy conservation activities, rental and sales consulting.
§ 1-4. Payment and liability for network services for all payments as required to give a customer as a result of conditions set by the grid company and the network company can stand in one form or another for monopoly, is regarded as actual income for network operations, cf. § 7-4. This does not apply investment contributions under § 17-5.
The customer can be billed for additional costs associated with the change of existing facilities, or when he demands quality or services that are not normally expected to be delivered. There must be evidence of the customer's order of service. Revenues resulting from the provision of such services may be excluded from actual income. Revenues and costs associated with this shall appear in reporting to the Norwegian Water Resources and Energy Directorate.
The grid company may let others perform network services if revenues and expenses associated with this appears in your company's reporting to the Norwegian Water Resources and Energy Directorate under business areas network, regional networks or central line. The grid company must appear outwardly as responsible for tasks or services.
Part II. Financial and technical reporting
Chapter 2. Reporting to the Norwegian Water Resources and Energy Directorate
§ 2-1. Reporting Obligation All concessionaires are obliged to submit financial and technical reporting to Norwegian Water Resources and Energy Directorate.
§ 2-2. Deadline for reporting shall be submitted to the Norwegian Water Resources and Energy Directorate in accordance with provisions for submission to the central business records are set out in or pursuant to the Accounting. In case of violation of the deadline for submission or significant deficiencies in reporting the provision in the Act of 29 June 1990 no. 50 (Energy Act) § 10-3 accordingly.
Reporting under subsection may upon application be postponed for up to four weeks if it does not hinder the implementation of these regulations. Deadline can not be later than 1 August.
Application deadline sent Norwegian Water Resources and Energy Directorate within three weeks after the company's annual accounts have been approved. Confirmation of the date of authorization shall be attached.
§ 2-3. Software Software developed by Norwegian Water Resources and Energy Directorate will be used when submitting the financial and technical reporting.
§ 2-4. Accounting principles shall be taken in accordance with the provisions of the Accounting Act and generally accepted accounting principles. Norwegian Water Resources and Energy Directorate may stipulate requirements for further specifications.
§ 2-5. Annual report and auditor's report annual report and auditor's report must be sent to Norwegian Water Resources and Energy Directorate together with reporting or as soon as they are finished print.
§ 2-6. Segment information for network operations Concession General's annual report should contain separate financial information network operations. It shall as a minimum disclosure of annual income, cf. § 8-6, inbound and outbound balance surplus and shortfall, any acquisition and amortization of shortfall or return of higher revenue in the period, operating profit, return basis and returns.
§ 2-7. Auditor role Concession General's auditor shall verify and certify that reporting is done in accordance with the provisions of this regulation.
§ 2-8. Subsidization network company shall not charge network operations with costs related to competitive business. Removal of revenues related to network operations over the exposed areas of activity is not permitted.
The transfer of assets, including financial and physical capital to be provided by grid companies to other legal persons shall be made at market terms.
By internal transactions between network operations and other business areas should actual costs are allocated directly to the segment performance is performed. Costs shall be allocated in proportion to the actual use of resources.
By utilization of shared assets between other areas of operations and network operations will cost, depreciation and asset values shared between the business areas on the actual use of assets.
Transactions between network operations and other business areas must be documented by written agreements. Norwegian Water Resources and Energy Directorate may order that a particular method of cost calculation or distribution shall be used.
Transactions between the network company and other companies in the same group shall be on market terms. Agreements between companies in the same group must be in writing.
Any acquisition of other companies in the same group, where the cost of the acquisition is charged network operations, shall as far as possible be based on competition. Selection of qualified bidders and awarding of such contracts shall be based on objective and non-discriminatory criteria.
Seventh paragraph does not include procurement of administrative services and property services. Seventh paragraph does not include contracts with an estimated value below 100 000 excl. VAT.
Chapter 3. reckoning structure and disclosures
§ 3-1. Areas of activity reports shall be on separate business areas to be divided into:
A)
power sales
B)
power
C)
Main Grid
D)
regional grid
E)
distribution
F)
telecommunications
G)
other operations.
Licensee shall distinguish competitive business and online operations in independent business areas with separate budgets and accounts. The concessionaire is obliged to allocate income and expenses to segments such that the operating profit for the business areas will provide the most accurate picture of the year's operations. Reporting should follow the calendar year. The accounts shall be reconciled with the financial statements per accounting item.
§ 3-2. Joint activities, transactions and reconciliation to the financial statements
a)
Common Commercial
Costs, revenues and assets shall as far as possible directly attributable to the business areas. All overhead costs and public assets should be distributed on the basis of an assessment of the business area's resources. Principles and allocation rules applied in the distribution shall be specified and shall be documented.
B)
transactions
Transactions shall not affect net income.
C)
Reconciliation to financial statements
Shall be made reconciliation with the financial statements and to clarify the reasons for any discrepancies between the financial statements and reporting.
§ 3-3. The accounting treatment of shareholdings Concessionaire is obliged to report to the Norwegian Water Resources and Energy Directorate although owner (s) are also reportable. Concessionaire which has stakes in reportable company shall not incorporate these assets under business segments.
Should disclose the names of all companies licensee has stakes in, the size of the stakes and by what principles holdings are included in the financial statements.
§ 3-4. Shared Network Operator of common network shall prepare a separate income statement for common network and income statement will go a financial balance.
§ 3-5. Construction Register licensee shall have a facility register which includes all assets. Construction Registry will provide an overview of gross initial historical cost, purchase date, depreciation plan, accumulated depreciation, net book value, investment grants and the like.
§ 3-6. Additional information
a)
will be provided detailed information on power sales.
B)
It should be given detailed information regarding principles for accounting treatment of activation, expensing and maintenance.
C)
It should be given detailed information about the principles of processing charges, grants and so forth.
D)
It should be given detailed information about facilities or rights that can be used in network operations as well as competitive business.
E)
All forms of remuneration activities of commercial grade pay for facilities or rights relating to the licensee's network operations shall be specified.
F)
In reporting should total power sales including losses meet the total power supply.
G)
Network installations to be reported in physical quantities, such as the number of km line, the number of transformers, number of km underground cable further.
H)
concessionaires with power generation should specify production rates. Power Station.
Chapter 4. Income Statement
§ 4-1. General information on the income statement The licensee shall report complete income statement in accordance with the provisions of the Accounting Act and generally accepted accounting principles. For business areas according to § 3-1 first paragraph shall be reported revenue, operating expenses and operating profit.
§ 4-2. Energy sales Energy sales to end users must be reported for the business area electricity trading. Sales of generated power will also be displayed during business area production.
§ 4-3. Energy purchases Energy purchases for resale are to be reported for the business area electricity trading. Energy purchases related to consumption in its own production facilities shall be the areas of power generation.
§ 4-4. Sales of network services Revenues from sales of services as well as calculation shall be reported for business segments main grid, regional grid and distribution network. Power supplier that bill online services on behalf of the network company will not report this as income from the sale of network services.
§ 4-5. Buying online services Purchase of network services should be reported for business segments power generation, main grid, regional grid and distribution network.
§ 4-6. Buying System Services Web Companies' purchase and sale of system services shall be reported for business segments main grid, regional grid and distribution network. With system services are services that are required for the transmitted power shall have the necessary quality, regulation capacity, reserves and reactive power.
§ 4-7. Net loss Net loss to be reported for business segments main grid, regional grid and distribution network. For network losses in public networks, each of the participating utility companies report losses in the network in its plant, cf. Chapter 12.
§ 4-8. Revenues and costs of customer management, metering and billing revenues and costs of customer relationship management, metering and billing shall be specified for network operations and competitive business.
§ 4-9. Gains or losses on disposal of fixed gain or loss on disposal of fixed assets should be reported for each business segment in accordance with § 3-1, first paragraph.
Chapter 5. Balance
§ 5-1. Generally the balance licensee shall report all balance in accordance with the provisions of the Accounting Act and generally accepted accounting principles.
Fixed assets, accounts receivable, inventory and accounts payable should be allocated to the business areas in accordance with § 3-1, first paragraph. Higher and lower revenue is allocated to the central grid, regional grid and distribution network. Other assets and liabilities are not allocated to business segments.
§ 5-2. Book values Book value of assets is calculated as gross initial historical cost less accumulated depreciation, amortization and any grants. Assets under construction are not included in the acquisition cost before the system is activated. Opening balance of the financial year shall be in accordance with the closing balance of the prior fiscal year.
§ 5-3. Fixed assets Fixed assets are to be reported at book value. If the carrying amounts in the financial statements are consistent with the values reported for business areas, must be accounted for differentials.
Power plants, watercourse systems with necessary property and rights for electricity production must be reported under the segment electricity production.
District heating systems with necessary property and rights to be reported under Other operations.
Central, regional and distribution facilities with the necessary property rights and should be reported to the respective business areas.
Customized plants shall be reported under the segments main grid, regional grid or distribution network.
Other assets should be reported under the business area in which they are applied. If assigned directly to the business areas is not possible, these assets will be distributed. The distribution should reflect the relative use of resources for the relevant business areas.
§ 5-4. Depreciation Gross initial historical cost should be amortized linearly. Depreciation shall be reported separately for the business areas.
§ 5.5 - § 5-6. (Repealed from 1 January 2007, ref. Regulations October 18, 2006 No.. 1171.)
Part III. Interruption Reporting
Chapter 6.
Part IV. Revenue for the Networks
Chapter 7. General revenues for network operations
§ 7-1. Revenue from the sale of network services from network activity permitted income from the sale of network services, annual revenue for the Networks cf. § 7-2, plus costs that can be recovered as an addition cf. § 7-3, less interruption costs, ref. § 9-1. From outage costs shall be deducted from the amount covered by individual agreements, cf. § 9-3.
§ 7-2. Annual revenue Norwegian Water Resources and Energy Directorate determines the individual annual income for grid activities after the end of each year, ref. Section 8
For determining the annual revenue administrator special regulations apply, see. Chapter 11.
Annual revenue is determined so that income over time to cover the costs of operation and depreciation of the grid and provide a reasonable return on invested capital, given efficient operations, exploitation and development of the network.
§ 7-3. Expenses that may be covered in addition to annual income the following costs to be covered in addition to annual income:
A)
Costs of buying network services from other network providers, and costs of renting other grid installations with revenue.
B)
Paid property.
C)
Changes in depreciation and in return as a result of amended return basis compared to values that are included in the cost basis, cf. § 8-1. If the changes are negative they shall be deducted from annual income.
D)
Costs of specific R & D projects previously approved by the Norwegian Water Resources and Energy Directorate. The supplement can not exceed 0.3 percent of net company's return basis in the relevant year.
§ 7-4. General information about online business income and relationship to tariffs The tariffs shall be calculated so that your organization's actual revenue over time does not exceed the permitted revenue cf. § 7-1.
§ 7-5. Tariff Handling and storage of excess or shortfall Norwegian Water Resources and Energy Directorate determines the individual yearly surplus or shortfall for network operations.
Higher revenue is a positive difference between actual revenues minus allowable income. Less Income is a negative difference between actual revenues minus allowable income.
Network operations to deal with higher revenue and lower revenue so that balance over time is zero. Higher revenues should be returned customers and lower revenue may be collected from customers through the calculation of tariffs.
When calculating the tariffs shall be taken of the estimated balance for higher or lower revenue in order to control this balance toward zero over time. When calculating the tariffs shall be taken into account assumed interruption costs. The grid company shall prepare and disclose to a reasoned and documented plan for this has been adopted by the Board. If the company does not have control, the plan shall be adopted by the company's highest authority. The company should be able to provide documentation that they have taken into account the balance of higher or lower revenue when the prescribed tariffs in each year.
Income shortfall that the network company shall not acquire or exceeding 25 percent of the allowable income excluding WEDGE-deduction and corrected WEDGE on each of the business areas main grid, regional grid and distribution network, should be amortized in reporting to the Norwegian Water Resources and Energy Directorate. Statnett SF's main grid, the requirement amortization less income that exceeds 35 percent of revenue allowed exclusive WEDGE-deduction and corrected WEDGE. In special cases apply for exemption from all or part of the depreciation requirement. Norwegian Water Resources and Energy Directorate, in individual cases in special cases reduce the accumulated shortfall does not exceed the limits set in the first paragraph.
Surplus or shortfall shall be calculated for central, regional and distribution network.
In connection with the decision shortfall arising from the merger of power utilities, the NVE establish detailed requirements for handling this.
§ 7-6. Outperformance and underperformance Norwegian Water Resources and Energy Directorate may by individual fix higher or lower returns for network operations. Excess return is unreasonably high returns, cf. Energy Act § 4-4 letter b. Excess return is negative difference between the grid company's return less the minimum return as determined by the Norwegian Water Resources and Energy Directorate. Minimum return is 0 percent calculated over the past 5 years.
Network Company's profit is calculated as operating profit in relation to yield basis. Operating profit is given by the revenue allowed for own network minus total expenses on their own network.
Any excess or underperformance is handled the same way as higher or lower revenue, cf. § 7-5.
§ 7-7. Distribution of revenue allowed for their own network of grid levels Grid operations are obliged to ensure that the distribution of revenue allowed for their own network at national, regional and distribution takes place according to objective and non-discriminatory criteria. The grid company shall document distribution.
Chapter 8. Determination of income limits
§ 8-1. Cost Basis Cost Basis for the current year is determined based on these reported values for the fiscal year two years back in time:
A)
operating and maintenance costs,
B)
depreciation on invested net capital,
C)
book value of net assets at December 31, plus 1 percent of net working capital,
D)
network losses in MWh,
E)
payments on very long interruptions, ref. § 9A-2, and
F)
WEDGE amount, cf. § 9-1.
The values in the first paragraph a), e) and f) shall be adjusted for inflation.
Inflation-linked pension costs should be included in the cost basis as the average of the fiscal years two to seven years back in time. For cost bases 2016-2019 shall restated pension costs for 2010-2013 included when calculating the average after the first sentence, enter into the calculation as an average of the reported pension costs for 2007-2013.
Costs incurred as a result of violation of law or orders issued pursuant to the Act shall not be included in the cost basis.
§ 8-2. Cost Norm Norwegian Water Resources and Energy Directorate shall annually set a cost norm for each company. The cost norm determined on the basis of comparative effectiveness analyzes should take into account relevant differences in companies' operating conditions. In special cases, the cost norm determined by individual assessment.
In determining the cost norm must be the fullest possible extent into account relevant economic costs in addition to its own costs.
§ 8-3. Reference Rate Norwegian Water Resources and Energy Directorate shall in determining annual income using a reference rate obtained by:
G: Fixed debt ratio was set at 60 percent
Rf: Solid neutral real fixed at 2.5 percent
Infl: Annual adjustment for inflation is calculated as the average of the last two years actual inflation based on CPI and estimates for inflation over the next two years. All figures published by Statistics Norway. If the calculated average is negative set it to zero
βe: Equity Beta set at 0.875
MP: Real market premium was set at 5 percent
Swap: Annual average of 5-year swap rate in two of the largest banks in Norway | || KP: Annual average industry-specific credit risk premium, as shown by the spread between 5-year power bonds and 5-year swap rates calculated by two of the largest banks in Norway. Kraft bonds shall belong to power companies with a rating of at least BBB +
s: Tax equal to the current tax rate for online companies.
§ 8-4. Reference Price on power Norwegian Water Resources and Energy Directorate shall in determining annual income utilizing an annual reference price for power.
The annual reference rate is a volume-weighted monthly rate plus a premium of 11 NOK / MWh. Monthly rate is the average current local area price of marketplace licensee.
As a basis weight used monthly gross consumption as it emerges from the Norwegian Water Resources and Energy Directorate short-term statistics for general supply.
§ 8-5. (Repealed)
§ 8-6. Determination of annual income for their own networks When determining the annual income should be 40 percent of the cost basis included in the calculation, when it is taken into consideration:
A)
Adopted reference rate cf. § 8-3 and
B)
reference price for the power cf. § 8-4.
When determining the annual income should be 60 percent to cover living expenses included in the calculation.
Norwegian Water Resources and Energy Directorate may, upon application or on its own initiative in special cases establish the income limit on a basis other than that which appears in the first or second paragraph.
§ 8-7. Interest Calculation of excess and shortfall shall be calculated annually interest on excess and shortfall of the average of the opening balance and closing balance before the addition of this year's interest. Annual interest will be added to the calculation of closing balances for excess and shortfall.
Annual average of NIBOR nominal interest rate with a maturity of three months with an additional 0.3 percentage points to be added to the calculation of interest on lower revenue and higher revenue of up to 25 percent of revenue allowed exclusive WEDGE-deduction and corrected WEDGE. Statnett SF's main grid should this rate be based on lower revenue and higher revenue of up to 35 percent of revenue allowed exclusive WEDGE-deduction and corrected WEDGE. For excess higher revenue in each of the business areas main grid, regional grid and distribution network shall NVE reference rate used.
In connection with the decision shortfall arising from the merger of power utilities, the NVE's reference rate applied when calculating the interest on this part of the shortfall balance.
Chapter 9. Quality adjusted income limit for undelivered energy (WEDGE)
§ 9-1. Quality adjusted income limit for undelivered energy Annual revenue must be quality adjusted as a result of disruption costs associated end users. This applies interruption costs for interruptions caused by failures or planned disconnections in high voltage or failure in distribution transformer, interruptions where the failure of low voltage causes disconnection in high-voltage and interruption by simultaneous switching of all low voltage on the same distribution transformer, reported in accordance with regulations of 30 November 2004 no. 1557 of supply in the power system.
Grid companies' total interruption costs calculated by summing the cost of any interruption within the year. Cost for a single interruption stated in § 9-2.
Abandonment costs as a result of system protection tripping compensated financially for approval of the system, cf. Regulation on 7 May 2002 no. 448 on the system responsibility in the power system, is not included in the KILE.
§ 9-2. Interruption Costs Specific outage costs, kP, ref, set in 2012-kroner per kW for each customer group are calculated for a not notified interruptions reference date based on the following cost functions, where t is the duration of any interruption:
Customer group
Cost function kP, ref (t = interruption duration in hours)
<1 min
≥ 1 min and <1hours
≥ 1 hour and <4 hours
≥ 4 hours and <8 hours
≥ 8 hours
Agriculture
5 + 14.3 * t
5 + 14.3 * t
19 + 15.6 * (t-1)
66 + 14.3 * (t- 4)
66 + 14.3 * (t-4)
Domestic
1.1 + 9.8 * t
1.1 + 9.8 * t
1.1 + 9.8 * t
1.1 + 9.8 * t
1.1 + 9.8 * t
Industry
34
34 + 84.7 * t
118+ 82.3 * (t-1)
365 + 55.6 * (t-4)
588 + 36.5 * (t-8)
Trade and Services
16
28 + 168.3 * t
196 + 91.1 * (t-1)
469 + 141.3 * (t-4) || | 1034 + 102.4 * (t-8)
Public Sector
7
60+ 113.2 * t
173 + 27.9 * (t-1)
257 + 51.8 * (t-4)
464 + 17.6 * (t-8)
Industry with eldrevne processes
49 + 2.8 * t
49 + 2.8 * t
49 + 2.8 * t
91 + 2.8 * t
91 + 2.8 * t
Reference dates for the respective customer groups are:
Agriculture
Domestic
Industry
Trade and Services
Public Sector
Industry with eldrevne processes
Thursday in January at. 6:00
Everyday in January at. 4:00 p.m.
Everyday in January at. 10:00
Everyday in January at. 10:00
Everyday in January at. 10:00
Everyday in January at. 10:00
Cost (Ki) for an arbitrary interruption time j, to be calculated as:
Kj = kP, ref · BC, m · BC, d · BC, h · Pref
where
Kj
= Cost in NZ for disruption at the time j
Where
Pref
= Interrupted power in the reporting if corresponding disruptions had occurred at the reference date (kWh / h), see subsection
KP, ref
= Specific interruption cost (in US $ / kW) on the reference date for a given duration, see subsection
BC, m
= Correction factor for interruption cost (in US $) in month m, see fourth paragraph
BC, d
= Correction factor for interruption cost (in US $) on day d, see subsection
BC, h
= Correction factor for interruption cost (in US $) in hour h, see sixth paragraph.
Correction factor fK, m is given by the following values for different customer groups for different months:
Month
Agriculture
Domestic
Industry
Trade and Services
Public Sector
Industry with eldrevne processes
January
1.00
1.00
1.00
1.00
1.00
1.00
February
1.10
1.00
1.00
1.00
1.00
1.00
March
1.10
0.90
0.87
1.00
0.67
1.00
April
1.10
0.90
0.87
1.00
0.67
1.00
May
0.90
0.90
0.87
1.00
0.67
1.00
June
0.90
0.80
0.86
1.02
0.51
1.00
July
0.90
0.80
0.86
1.02
0.51
1.00
August
0.90
0.80
0.86
1.02
0.51
1.00
September
1.00
1.00
0.88
1.06
0.58
1.00
October
1.00
1.00
0.88
1.06
0.58
1.00
November
1.10
1.00
0.88
1.06
0.58
1.00
December
1.10
1.00
1.00
1.00
1.00
1.00
When duration of any interruption affecting more than one of the time periods set out in column 1 shall be the weighted average of the correction factors used.
Correction factor fK, d is given by the following values for different customer groups for different days of the week:
Weekday
Agriculture
Domestic
Industry
Trade and Services
Public Sector
Industry with eldrevne processes
Everyday
1.00
1.00
1.00
1.00
1.00
1.00
Saturday
1.10
1.10
0.13
0.45
0.30
1.00
Sundays / holidays
1.10
1.10
0.14
0.11
0.29
1.00
When duration of any interruption affecting more than one of the time periods set out in column 1 shall be the weighted average of the correction factors used.
Correction factor fK, h is given by the following values for different customer groups for different times:
Time
Agriculture
Domestic
Industry
Trade and Services
Public Sector
Industry with eldrevne processes
0000-0600
0.80
0.90
0.12
0.11
0.43
1.00
0600-0800
1.00
1.00
1.00
1.00
1.00
1.00
0800-1200
0.90
1.00
1.00
1.00
1.00
1.00
1200-1600
0.70
1.00
1.00
1.00
1.00
1.00
1600-1800
1.00
1.10
1.00
1.00
1.00
1.00
1800-2000
1.00
1.10
0.14
0.30
0.31
1.00
2000-2400
0.80
1.10
0.14
0.29
0.31
1.00
When duration of any interruption affecting more than one of the time periods set out in column 1 shall be the weighted average of the correction factors used.
The total cost of an interruption at an arbitrary time j, shall be multiplied by the following factor for the respective customer group if the interruption is notified:
Customer group
Alerted interruption
- specific interruption cost is multiplied by the factor:
Agriculture
0.80
Domestic
0.90
Industry
0.50
Trade and Services
0.70
Public Sector
0.82
Industry with eldrevne processes
1.00
The total outage costs shall be adjusted annually for the overall price and cost developments in society using Statistics Norway's consumer price index (CPI). Disruption cost of series of interruptions during a single operational interference is calculated as the sum of the cost of interruptions separately, limited to the cost of one continuous interruption.
If grid operators have agreed to individual interrupt rates of disbursement to the end user in accordance with § 9-3, the interruption rate is set equal to the agreed rate of interrupted power or energy not supplied pertaining to this end user.
§ 9-3. Individual agreements on direct payment Concessionaire may enter into agreements with retail payment of interruption costs for disruptions covered by § 1.9. For such an agreement to be valid the following conditions must be met:
A)
agreement shall be in writing and signed before disruption occurs.
B)
It shall be agreed abandonment rate in US $ per kW or £ per kWh for various interruption durations respectively notified and not notified interruptions. Abandonment rate shall be calculated on the basis of information about the end user's expected costs of different interruption durations and different time interrupt occurs. It must be clear what assumptions the calculation of the rates is based.
C)
User must have an expected annual energy output greater than 400 000 kWh.
Interruptions concessionaire shall pay the end user an amount equal to the agreed rate multiplied by the estimated quantity of interrupted power or energy not supplied.
If the conditions in the first paragraph are not met, coming § 9-2 first ninth paragraph applies.
Chapter 9A. Quality adjusted income limit for very long interruptions
§ 9A-1. Quality adjusted income limit for very long interruptions from network activity revenue is annually adjusted for growth in supply by the costs of very long interruptions included in the effectiveness analysis, ref. § 8-2.
Costs of very long interruptions are the costs net operations by payments under § 9A-2. The costs included in the cost basis, cf. § 8-1.
§ 9A-2. Payments to end users at very long interruptions End Users on any network level may demand directly paid an amount of network company at very long interruptions. Very long interruptions are interruptions lasting more than 12 hours, and the amount is:
A)
£ 600 for interruption even 24 hours,
B)
£ 1.400 for interruption of 24 hours and even 48 hours,
C)
£ 2,700 for interruption over 48 hours and even 72 hours.
For interruption beyond 72 hours should be given a supplement of £ 1,300 for each new commenced twenty-four hour period interruption lasts.
User must submit a claim under subsection within a reasonable time after the normal supply was restored.
For homes, a total annual requirement not exceed anticipated to be paid tariffs for the current year. Expected paid tariff is expected annual consumption in kWh multiplied by the applicable rate for the energy component in addition to the fixed link.
§ 9A-3. Registration and calculation of very long interruptions duration for a very prolonged interruption calculated from the time grid company first received notice of cancellation, or network company knew or should have known that disruption has occurred.
Timeout expires when normal supply is restored. Several subsequent interruption is considered continuous if not normal supply is maintained for a minimum of two consecutive hours.
§ 9A-4. Online company information requirement grid company is obliged annually to inform the end users about their right to payment under § 9A-2, and shall prepare a report form which the end user can use when he promotes such a requirement.
§ 9A-5. Relations between responsible and affected concessionaire Affected concessionaire pursuant to the Regulations on 30 November 2004 no. 1557 of supply in the power system § 2A-3 will undertake payment to retail under § 9A-2, first paragraph. Affected concessionaire may require the end user amounts paid back from the licensee responsible.
§ 9A-6. Derogation The provisions of this section may be waived by agreement as referred to in regulation on 30 November 2004 no. 1557 of supply in the power system § 1-3.
Chapter 10. Redistribution of annual income limits on its own network
§ 10-1. (Repealed from 1 January 2007, ref. Regulations October 18, 2006 No.. 1171.)
§ 10-2. Transfer of network installations If a buyer or seller on transfer of existing grid infrastructure agree on a change of annual revenue shall Norwegian Water Resources and Energy Directorate informed in writing about the financial consequences for the income limits within three weeks after the license under the Energy Act, Chapter 3 has been announced.
Information shall be signed by the Contracting Parties and be accompanied by a summary of changes in the Parties annual revenue, changes in higher and lower income and changes in the cost base, ref. § 8-1.
Based on the orientation determines Norwegian Water Resources and Energy Directorate at individual new annual revenue and new more- and less income for the buyer and seller with effect from the year the parties agree, but not earlier than the year orientation is received. The parties' combined annual revenue does not change as a result of the transfer.
§ 10-3. Change of book value on transfer of network installations By redistribution of income under § 10.2, the Contracting Parties book capital adjusted by the asset's carrying value. Any gains or losses, ie the difference between the selling price and the asset's carrying amount does not affect the grid company's annual revenue for its own network.
§ 10-4. Acquisitions and mergers On acquisition or merger be the sum of the annual income limits for the TSOs involved for calculation of new annual revenue. Acquisitions or mergers should not entail that the total annual income limit increases.
Norwegian Water Resources and Energy Directorate shall be informed in writing of the consequences for the annual income limits, excess and shortfall and the cost basis of both buyer and seller, not later than three weeks after the necessary permits from the authorities is given.
On the basis of the written briefing stipulates Norwegian Water Resources and Energy Directorate at individual new annual income limits and more- and less income for the Contracting Parties with effect from the year the parties agree, but not earlier than the year orientation is received.
Chapter 11. Annual revenue for the Transmission System Operator
§ 11-1. General information on the financial regulation of the transmission system operator The assigned task as administrator for the Norwegian power system, controlled by a collective revenue, which includes costs related to its own network equipment and costs related to the exercise of the system responsibility.
§ 11-2. Annual revenue administrator For determining the annual revenue for the Transmission System Operator Chapters 7, 8, 9, 10 and 12 to the extent applicable.
It is given a yearly addition to costs related to the exercise of the system responsibility. Cost Basis related to the performance of the system responsibility shall be determined on the basis of reported values for the relevant year. When determining the annual supplement shall be 40 percent of the cost basis and 60 percent of fixed cost norm for the performance of the system responsibility included in the calculation. The cost norm should reasonably allow for uncertainties related to hydrological conditions, congestion management in other countries, production and consumption structure and other circumstances beyond administrators' control. The cost norm for the performance of system operation is adjusted annually for changes in the consumer price index.
§ 11-3. Change of annual additional costs of exercise of system operation if the state government imposes measures that entails costs beyond what could reasonably be expected covered within annual additional costs of exercise of system operation may Norwegian Water Resources and Energy Directorate at individual adopt a change the annual additional costs of exercise of the system responsibility.
Norwegian Water Resources and Energy Directorate may, upon application from the system or on its own motion adopt an amendment to the annual additional costs of exercise of the system responsibility in extraordinary cases or any significant changes in system operation.
§ 11-4. Reporting system operator shall further stipulate Norwegian Water Resources and Energy Directorate report on matters of importance to the financial regulation of the administrator and socially efficient performance of the system responsibility.
Report shall be publicly available and will be evaluated by Norwegian Water Resources and Energy Directorate.
Norwegian Water Resources and Energy Directorate may request further information on matters relating to the financial regulation and socially efficient performance of the system responsibility.
Chapter 12. Special provisions concerning common network
§ 12-1. General information about common network establishment of joint networks shall not cause the total annual income limit for their own networks for the involved network companies increases.
§ 12-2. Operator responsibility Operator is responsible for the tariff classification of network services, cf. Part V. The operator shall settle the costs of the external procurement of network services.
Operator shall distribute the revenue from tariffs of common web at each affected utility companies on the basis of objective, verifiable and non-discriminatory criteria.
The operator shall annually allocate network losses in public today. Information on annual net loss in MWh and allocated between each of the involved TSOs shall be forwarded to the Norwegian Water Resources and Energy Directorate and the involved TSOs.
§ 12-3. Income from public networks are not set separate revenue for public networks. Each of the involved TSOs shall set aside part of the income ceiling for own network to tariff basis for common online. The revenue collected by the operator shall be recognized as actual income of the involved TSOs.
Network company shall for the operator of the public network to document and account for the proportion of annual income for its own network to be classified by the operator. This percentage of annual revenue for its own network should be drawn up on the basis of objective, verifiable and non-discriminatory criteria. Operator may require calculation certified by the auditor.
For higher or lower revenue arising from the classification of common web terms § 7-5 accordingly. Higher or lower income should tariffing purposes is handled by the operator. Accounting should higher or lower income handled by each of the participating utility companies.
Network company shall for the operator of the public network to document and account for the proportion of annual income for own net payable by the operator. This percentage of annual revenue for its own network should be drawn up on the basis of objective, verifiable and non-discriminatory criteria. Operator may require calculation certified by the auditor.
Part V. Tariffs
Chapter 13. General information on tariffs
§ 13-1. Principles for Point tariffs All TSOs are responsible for drawing up the tariffs that are point based on the following principles:
A)
tariffs be referenced attachment points.
B)
agreement with the network provider in the connection point shall provide access to the entire network system and electricity market.
C)
network company is obliged to offer all that grid services non-discriminatory and objective point tariffs and terms.
D)
tariffs shall be designed to the extent possible signaling effective utilization and efficient development of the network.
E)
tariffs are differentiated according to objective and verifiable criteria based on relevant grid conditions.
F)
tariffs shall be determined independently of agreements on power purchases / power sales.
G)
tariffs will give network company revenues to cover costs within the allocated revenue, expenses in overhead networks, paid property taxes and mandatory payments to energy fund.
H)
The individual unit or home to be measured and settled separately.
§ 13-2. General rules for tariff tariffs for tapping and feeding of power shall be prepared by the following basic structure:
A)
use dependent tariff which varies according to the client's ongoing withdrawal or input of energy.
B)
second tariff.
§ 13-3. Usage-dependent tariff Usage-dependent tariff consists of energy joints and capacity levels.
Energy component will generally be determined based on the marginal lending losses in the network.
The utilities can fix capacity joints so as to create a balance between transmission requirements and network capacity. Capacity joint may be used when the transfer demand exceeds the capacity of the network.
§ 13-4. Other tariff Other tariff will cover network costs not covered through the use dependent tariff.
§ 13-5. Duty TSOs duties on its own initiative to provide other network providers the information necessary for these employees to calculate their own tariffs. Information shall be provided within a reasonable time before the new tariffs come into force.
The utilities are obliged upon request and within a reasonable time to provide information about the calculation of own tariffs and calculation of tariffs for the different customer groups.
Tariffs and other terms shall be collected in separate brochure, or other written information that is available to network customers.
TSOs shall within reasonable time before the change of tariffs come into force informing the individual network customer about tariff changes. The information shall include a justification for the tariff changes.
The utilities are obliged to inform the Norwegian Water Resources and Energy Directorate regarding changes to their tariffs within one week after they have been adopted.
Event of disagreement between grid operators and network customer about tariffs and other transmission conditions, duties grid company to inform the customer that Norwegian Water Resources and Energy Directorate is the supervisory authority under the provision of Regulation 7 December 1990 no. 959 § 9-2 and the provision of § 18 -1 of this regulation.
§ 13-6. CONTRACT Agreements with terms for connection and use of the network will be concluded directly between TSOs and each customer.
Chapter 14. Practical design of tariffs for ordinary withdrawal
§ 14-1. Formulating tariffs for ordinary withdrawals in central and regional grid in central and regional grid should energy component from 1 January 2003, be referred to the individual connection points. The energy component should be time-differentiated. Time differentiation must at least be winter day, winter night / weekend and summer. Marginal loss percentages should as far as possible calculated with regard to the system load in a joint grid system and a production and load situation that is representative of each epochs. When the energy component will be determined individually for each connection point, the loss rate respectively tapping and feeding have the same absolute value but opposite sign.
In central and regional grid will effect based tariff determined by the customer's power load in defined reference hours. Reference Hours shall as far as possible not be predicted by online users. There can be several measurements into account. It may be determined a minimum effect basis.
§ 14-2. Formulating tariffs for ordinary withdrawals in the distribution network in the distribution going customers without power settlement offset by a fixed component and an energy joint so:
A)
fixed term covers customer-specific costs and a portion of the remaining fixed costs in the net.
B)
energy component covers marginal lending losses and may also cover a portion of the other expenses that are not collected through fixed joint.
Customers with effect settlement in the distribution to be charged fixed charge, energy joints and effect link. The fixed component shall as a minimum meet customer-specific costs. The energy component shall as a minimum cover the marginal costs of electricity losses in the grid. Effect component shall be based on the customer's power output in defined periods.
Will be prepared separate tariffs for high voltage and low voltage outlets.
For low-voltage outlets will effect the joints be quantity differentiated. These tariffs shall be designed so that all customers pay the same price for withdrawals up to the first stage and reduced rates at the later stages. Alternatively tariffs determined otherwise providing equivalent effect.
Network Owner shall offer tariffs with time differentiated energy pendants for all customers in the distribution network that regulations are required meter reading several times a year.
§ 14-3. Joint metering of end customers TSOs shall on request provide metering and billing per common inlet line when metering and billing under § 13-1 letter h) gives unreasonable additional costs.
Chapter 15. (Repealed)
Chapter 16. Practical design of tariffs for input from production
§ 16-1. The energy component The energy component of feed should reflect the marginal costs of electricity losses in the grid by feeding in the connection point. § 14-1 first paragraph applies correspondingly.
§ 16-2. Other tariff Main Grid feed-in tariffs to be normative for other tariff by feeding into regional and distribution network.
Settled amount will be based on the power plant's average annual production. For power plants with installed capacity less than 1 MW shall settled amount exceed 30% of the installed capacity multiplied by 5,000 hours.
§ 16-3. Income from feeding into distribution Income from other tariff tariff for the distribution network is to cover the costs of the distribution network, and shall not be passed on to the overhead line.
Chapter 17. Other tariff provisions
§ 17-1. Production-related network facilities costs of production related network facilities to be covered by the manufacturer and not included in the tariff the outlet. With production-related grid infrastructure means power lines and other network installations where the main feature is the transfer of power from the associated production facilities to the nearest exchange point in the grid.
When it is associated with withdrawal to production-related network installations, a reasonable proportion of the costs of these facilities included in the tariff base for the second tariff for withdrawals.
Other tariff shall not exceed the corresponding tariff referred nearest connection point with the adjacent ordinary network installations. Withdrawal from production-related network facilities shall be calculated energy part ref. § 14.1 and § 14.2.
§ 17-2. Ordinary withdrawal from power plants For withdrawals to distribution directly from the public network facilities associated with power plants that over the year, the net input to regional or central grid, other tariff is calculated on the entire gain, compared with the tariff by direct connection to the main grid, accrues outlet . Costs in the infrastructure used only for withdrawals, to be covered by the distribution network. Withdrawal shall be calculated energy subsection referred connection point, cf. § 14-1.
§ 17-3. Reactive power network companies have exclusive right to sell reactive power from its network.
Price of reactive power should be based on the costs withdrawal of reactive power consumption inflicts network company.
The utilities can set a limit for the maximum permissible output of reactive power. Charges for withdrawal under this limit shall be included in the general tariffs. Withdrawal of this boundary is settled by a separate tariff for reactive power.
§ 17-4. Connection fees Connection fees can be used for new connections or upgrade the dimensions of an existing connection.
The connection fee shall be general and apply all new connections in the network.
Connection fee may be differentiated by overload protection (fuse).
§ 17-4a. Tariffs special services network company may establish tariffs for special services at the client. Such tariffs should reflect the costs associated with the service.
§ 17-5. Plant contributions Utility companies may establish an investment contributions to cover the construction costs of new network subscriptions or by amplification of the net to existing customers.
Plant contributions by reinforcing an association can be calculated when the customer requires increased capacity or quality that triggers the need for amplification. Construction contribution shall be calculated from the costs arising from the client connection to the network.
When a connection as described in subsections trigger reinforcements in radial joint facility, a proportionate share of these costs be included in the fixed contribution.
For investments in meshed networks can investment contributions only determined in extraordinary cases.
Plant contributions shall be determined regardless of the customer's expected energy output and maximum set at construction cost of plant minus connection fee.
Project cost is set equal to the necessary costs of the association or gain, including hours for personnel, equipment and supplies.
The grid company may allocate fixed contribution between customers who are affiliated at the time of completion of the facility and customers who are connected at a later date, but no later than within ten years after completion of the plant. The distribution can take the form of a recalculation of fixed contribution, as new customers become attached or by the grid company will advance investment costs and determines plant contribution rata to those customers who eventually will be connected to the network.
Network company shall in advance inform the customer about the collection of, and basis for calculating, plant contribution.
§ 17-6. Tariffs on acquisition and merger case of acquisitions and merging of networks in neighboring grid areas shall be established as tariffs. If tariffs ahead were significantly different, different tariffs are maintained for a transitional period of up to seven years.
Maintained different tariffs for mergers and acquisitions should NVE notified accordingly.
§ 17-7. Tariff Ring under rationing When the ministry has implemented rationing pursuant to § 6-2 of the Energy Act, the rationing authority may establish specific tariffs which ensures that power rationing implemented in a socially efficient manner, so that the energy is best exploited in the interest of public and private interests.
Part VI. Other provisions
Chapter 18. Commencement and transitional provisions
§ 18-1. Orders Norwegian Water Resources and Energy Directorate may issue the orders necessary for implementing these regulations and conditions set in the licenses issued by the Norwegian Water Resources and Energy Directorate pursuant to the Energy Act.
§ 18-1a. Violation charge In case of violation of provisions of § 2-1, § 2-2, § 2-8, § 4-1, 5-1, § 7.1, § 7.4, § 7.5, § 7.7 , § 9A-2, § 9A-4, § 11-4 and Chapter 13 to 17 may be subject to fines.
§ 18-2. Exemptions Norwegian Water Resources and Energy Directorate may in special cases grant exemptions from these regulations and conditions set in the licenses issued by the Norwegian Water Resources and Energy Directorate pursuant to the Energy Act.
§ 18-3. (Repealed by Regulation 5 Dec 2005 no. 1470, effective January 1, 2006).
§ 18-4. Appeals Decisions made by the Norwegian Water Resources and Energy Directorate may be appealed to the Ministry. The complaint addressed to the Ministry and sent to the Norwegian Water Resources and Energy Directorate for preparatory appeal.
§ 18-5. Entry into force These regulations enter into force on 1 April 1999.
§ 7-5 fifth paragraph shall enter into force on 1 January 2015, effective the first time for the accumulated shortfall calculated on the basis of the allowable income for 2015.
§ 18-6. Transitional provisions of decisions relating to the regulation period 2002-2006 should be regulations on financial and technical reporting as it read on 31 December 2006 shall apply.
Any excess or shortfall due WEDGE, ref. To § 9-1 first paragraph sounding 31 December 2006, shall be deposited or capitalized as higher or lower revenue in accordance with § 7.5 with effect from 1 January 2007.
When calculating the annual income for 2007 and 2008, both the cost base and cost norm attributed to 50 percent by weight, ref. § 8-6.
