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< German L-gas zones consolidated | Commission agrees new energy-efficiency labelling for consumer products >
Germany regulator approves big hike in fees for electricity network operators
All ill wind: balancing the grid is more costly with growth of wind power
Germany's energy regulator has said transmission system operators (TSOs) can increase their fees by 13-30 per cent this year.
The Federal Network Agency (FNA) has been forcing through sharp revenue cuts since 2006 to encourage new market entrants and improve competition in the power market. The regulator's about-turn comes in response to the TSOs' sharply increased costs for balancing energy, the result of greater dependence on wind power and other renewables. The economic downturn has also hit overall grid usage.
Eon Netz is the biggest winner, with a jump of 30 per cent in its permitted grid charges. RWE revenues will rise 9-16 per cent, depending on where power enters the network, while the grid subsidiaries of EnBW and Vattenfall Europe can raise fees by 13-14 per cent. Network fees secured by the big four will increase by several hundred million euros this year.
Both the FNA and leading network operators insisted that the jump in charges would not feed through into higher customer bills. Grid fees make up about 25 per cent of household tariffs, but the bulk of this is raised on distribution lines operated by municipal and regional suppliers.
FNA president Matthias Kurth estimated that transmission was "no more than 10 per cent" of total network fees.
Higher guaranteed returns should also help Eon and Vattenfall Europe make their grid disposals. Vattenfall has struggled to drum up interest in its grid company since the autumn, prolonging the tender period several times. Eon's network sale finally gets under way next month.
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