The cost for the development and maintenance of the Hellenic Electricity Transmission System (HETS), is recovered by users through Use of System Charges (UoS), based on the “Methodology for the estimation of the Allowed Revenue (AR) of the Hellenic Electricity Transmission System Operator” (Methodology) and the relevant articles of the Transmission System Code [System Code, Decision 57/2012, as in force after Decisions 339/2014 and 340/2014.

Particularly, according to the Methodology, and the relevant articles of the Code (Chapter 59), UoS charges are calculated based on the following procedure:

a)   At first, RAE decides on the forecasted Allowed Revenue (AR) of the Operator of the HETS, for the next Regulatory Period (4 years, except the first period where the duration will be 3 years), based on Operator’s relevant proposal.

For the calculation of the AR, for every year of the regulatory period, the following are taken into account:

1. the annual estimated operating expenditure of each year (O),
2. the annual depreciation of the Operator’s fixed assets (Dep),
3. the return on capital employed (R), calculated by multiplying the following parameters:

1. the value of the Regulatory Asset Base (RAB) for each year, and
2. the real, pre-tax, rate of return percentage (r).

b)  Then, after smoothing the fluctuations of the AR, if needed, RAE calculates the Operator’s Required Revenue (RR) for the next year. The RR, is composed by the AR, adjusted by the following parameters:

1. The settlement amounts due to under-recovery or over-recovery (positive or negative sign) of the Required Revenue collected through the application of Use of System charges of previous years (parameter Π1).
2. The settlement amounts due to over-investment or under-investment of previous years (parameter Π2).
3. Revenues from Interconnection Capacity Rights Revenues from the participation in the Inter-TSO Compensation Mechanism for the infrastructure usage in previous years (parameter Π3).
4. Revenues from the participation in the Inter-TSO Compensation Mechanism for the infrastructure usage in previous years, which constitutes debit or credit (positive or negative sign) for the TSO and as a result is increased or decreased due to possible cost recovery (parameter Π4).
5. Revenues from other, non-regulated, activities, providing that the capital employed and the operating expenses of these activities are not unbundled in the accounts and have been included in the estimation of the Operator’s Allowed Revenue (parameter Π5).

c)   Finally, based on the previous year’s Required Revenue, RAE calculates and approves the unit charges by the 30th of November each year.

The RR is allocated at 100% to the total amount of Customers of the HETS by the following rule (Code, Article 276):

1. Between Customers that are connected to High Voltage (HV) and the rest of the Customers, Medium Voltage (MV) and Low Voltage (LV), depending on their capacity charge. The unit charge for each Customer connected to the System (€/MW) is the same across the Greek territory, and is defined as the quotient of the Required Revenue for the System allocated to the relevant Customer category, divided by the sum of this category’s  capacity charges. The charge for Customers connected directly to the System, is calculated by multiplying the Customer’s capacity charge with its relevant unit charge.
2. The allocation between MV and LV customers is based on the relevant methodology in the UoS Manual, which is published by RAE (Methodology – Manual for the Use of System Charges for Distribution Network Customers – RAE’s Decisions 1332/2009 and 2215/2010). The basic principles are the following:

1. the charge for every Customer for System usage reflects the cost caused by the operation of customers’ infrastructure to the System,
2. the calculation of the unit charge for Use of System is as simple and understandable for Customers, and its outcome is sufficiently verifiable,
3. incentives are given to the Customers through the charges, in order to manage their demand and especially the variations of their load,
4. existence of or capability for implementation of meters, which may provide detailed information regarding base load characteristics, is taken into consideration.

RAE’s Acts

• October 2014 - Decision 572/2014 – Allowed Revenue for the Regulatory Period 2015 - 2017
• April 2014 - Decision 195/2014 – Cost of System and Use of System Charges for 2014
• December 2012 - Decision 1016/2012 - Cost of System and Use of System Charges for 2013
• November 2011- Decision 1456/2011 «Διατήρηση των υφιστάμενων Χρεώσεων Χρήσης του Συστήματος Μεταφοράς και του  Δικτύου Διανομής ηλεκτρικής ενέργειας»
• December 2010-  Decision 2215/2010 – Methodology Amendment for Use of Network Charges
• December 2010 - Opinion 377/2010 – Cost of System and Use of System Charges for 2011
• December 2009 – Opinion 501/2009 – Cost of System and Use of System Charges for 2010 / Opinion 510/2009 – Unit Charges for 2010
• June 2009 - Decision 1332/2009 – Methodology for Use of Network Charges
• June 2009 – Opinion 177/2009 – Cost of System and Use of System Charges for 2009
• April 2007 – Opinion 137/2007 – Cost of System and Use of System Charges for 2007 

Ministerial Decisions ΥΠΑΝ / ΥΠΕΚΑ

• December 2010 – Ministerial Decision for the calculation of the Cost of System and Use of System Charges for 2011
• December 2009 - Ministerial Decision for the calculation of the Cost of System and Use of System Charges for 2010
• June 2009 - Ministerial Decision for the calculation of the Cost of System and Use of System Charges for 2009
• June 2007 - Ministerial Decision for the calculation of the Cost of System and Use of System Charges for 2007

Relevant Studies

• Study for WACC for the System and the Network (December 2013)