Power, Network rental | Good news for households



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NVE has moderated the proposal for a new network lease. Charging stations for electric cars with little traffic fare better.

In February this year, the watercourse authorities presented the proposal for a new network rental for households. Had the proposal passed, it could have led to major changes for households.

But the proposal generated huge protests. Therefore, the Regulatory Authority for Energy in NVE (RME) has sent a proposal for a new model to calculate the grid rent to the Ministry of Oil and Energy.

NVE has adjusted the proposal on important points after rounds of consultation and now presents what they describe as a simpler and more conservative model. The most important post-consultation adjustments are that most domestic customers will not receive major changes to their network rental as a result of the reorganization.

Also read: NBBL and Homeowners Sacrificial Grid Rental Proposals: – Those who use the least are the most affected

Fallen

NVE falls to introduce an electrical link for homes. Furthermore, commercial customers with a consumption of less than 100,000 kWh per year should be treated as domestic customers. This will apply, among other things, to charging stations for electric cars with little traffic. This means that, among other things, charging stations for electric cars with little traffic fare better.

The rental of the network consists of paying the energy provider that owns the electricity network and will be used for the operation and maintenance of the electricity network. This rental consists of two parts: a fixed link and a power link or “shipping price”.

The energy component is based on actual consumption. If you use little energy, this part of the grid rent is low. The fixed link is just as expensive regardless of consumption.

– Customers with a “normal” consumption pattern will pay approximately the same network rental as today, without making any changes to their consumption. Customers who want to change their consumption can reduce the network rent, says director of waterways and energy, Kjetil Lund, in a press release Wednesday morning.

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Press load

The use of energy puts pressure on the capacity of the Norwegian electricity grid at times. NVE believes that the current grid rental offers little incentive to shift electricity consumption at times of the day with the least load on the grid.

The challenge is that Norwegian society is electrified, so NVE believes that we can risk having to build more networks than necessary.

– May lead to unnecessary increases in network income and unnecessary invasion of nature. We want to avoid such development, says Lund.

Also read: The price of the energy giant’s lure: – Definitely a bad deal

Reflects usage

The principle behind determining the power link in the grid rental is that this should reflect the cost of the customer’s use of the grid. With the new NVE proposal, the so-called energy bond can be set higher than the marginal loss and can vary throughout the day.

It opens for so-called “time of use models”. The upper limit is 50 percent of the network company revenue for each customer group.

– Finding good solutions is often about balancing what is objectively correct by finding solutions that many can agree on and that can provide stability. Now we have a model that offers more correct incentives than the current ones, but at the same time entails small changes for the great majority, says Lund in the press release.

The objective of the changes is to facilitate the best possible use of the electrical network and a reasonable distribution of costs among customers.



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