Transmission System’s Cost and System Use Charging

The costs incurred for the development and maintenance of the Hellenic Electricity Transmission System (ESMIE) are recovered by the users through the System Usage Charges, according to the “Methodology for Calculating the Required Income of the ESMIE Operator” (Decision 340/2014 (in Greek)) and the relevant subsections of the Recast of the Operation Code of the Hellenic Electricity Transmission System (Gazette B’ 4658/22.10.2020 (in Greek)).

More specifically, according to what is provided in the above Methodology, as well as according to Section 9 of the Operation Code, the calculation of System Usage Charges is conducted as follows:

  1. a) RAE decides on the Allowed Revenue of the Operator (AR) for the 4 years of the Regulatory Period (RP), taking into account the opinion of the Operator.

For the calculation of the Allowed Revenue (AR) of the Operator for each year of the RP, estimates are performed for:

  • The budgeted annual operating expenses of ESMIE (O).
  • The annual depreciation on the tangible and intangible assets of Operator (Dep).
  • the return (R) recognized on the capital employed as the product of the following parameters:
  1. the estimated value of the Regulatory Asset Base (RAB) of the year.
  2. the actual pre-tax Rate of Return (r).
  3. b) RAE, if deemed appropriate, normalizes the fluctuations of the Allowed Revenue between the years of the Regulatory Period, and calculates the Required Revenue of Operator (RR) for the following year. The Required Revenue (RR), consists of the Allowed Income (AR), taking into account the following parameters:
  • The projects cost of ESMIE implemented with third party funding (parameter K)
  • Under-recovery or over-recovery of revenue from the application of charges in previous years (parameter P1).
  • Clearings due to underinvestment or overinvestment in previous years (parameter P2).
  • Revenues from the auction of Interconnection Rights (parameter P3).
  • Revenues from participation in the Inter-Transmission System Operator Compensation Mechanism (ITC) between Transmission System Operators for the infrastructure use component (parameter P4).
  • The Operator’s income from other, non-regulated, activities (parameter P5).
  1. c) Based on the approved Required Revenue for each year, the unit prices of the System Use Charges are approved by RAE, which are implemented one month after their entry into force, in accordance with the provisions of Article 140 of law 4001/2011.

The Required Revenue, which corresponds to all Customers, is divided between the Customers connected to ESMIE and the Customers connected to the Distribution Network, depending on the capacity with which they are charged as follows (subsection 9.3 of the reissue of the ESMIE Management Code):

  • The charges corresponding to each Customer directly connected to ESMIE is budgeted on an annual basis and is determined as the product of the Customer’s capacity billing multiplied with the unit charge corresponding to it. The unit charge for each Customer connected to the ESMIE in Euros/MW is the same for the whole country and is defined as the quotient of the Required Revenue distributed to these Customers divided by the sum of their capacities billing.
  • The methodology of distribution of the Required Revenue that is proportional and distributed to the Customers connected to the Distribution Network, the categories of the Customers and the methodology for determining the unit prices of the System Use Charges or the billing invoices of these Customers, as well as the necessary settings included in the System Use Charges Manual for Network Customers of ESMIE Management Code (RAE Decisions 1332/2009 (in Greek) and 2215/2010 (in Greek)). The basic principles of this methodology are the following:
  • the charge of each Customer for the use of ESMIE should reflect, as far as possible, the costs incurred respectively by the operation of the Customer’s facilities in ESMIE,
  • the calculating process per unit level of the System Usage Charge should be simple and understandable for the Customers, and its result should be sufficiently predictable,
  • Customers are included in the Customer Categories depending on the burden they cause to ESMIE,
  • to provide, through charges, incentives to Customers to manage their demand and in particular the fluctuation of their cargo,
  • takes into account the existence or possibility for installing metering devices, which on the one hand allows the most efficient management of the load of each Customer and on the other hand allows for the collection of detailed data on the load characteristics.

 

RAE Acts

Regulatory Period 2018-2021

  • February 2020 – Decision 3/2020 (in Greek) “Approval of the Charges for the Use of the Hellenic Electricity Transmission System (ESMIE)”
  • January 2019 – Decision 100/2019 (in Greek) “Approval of the Required Revenue for 2019 of the Hellenic Electricity Transmission System (ESMIE) Operator”
  • March 2018 –  Decision 235/2018 (in Greek) “Approval of the Allowed Revenue for the Regulatory Period 2018-2021, as well as the Required Revenue for 2018, of the Hellenic Electricity Transmission System (ESMIE) Operator”

Regulatory Period 2015-2017

  • November 2016 – Decision 456/2016 (in Greek) “Approval of the Charges for the Use of the Hellenic Electricity Transmission System (ESMIE)”
  • October 2016 – Decision 404/2016 (in Greek) “Approval of the Required Revenue for 2017 of the Operator of the Hellenic Electricity Transmission System (ESMIE)”
  • December 2015 – Decision 466/2015 (in Greek) “Approval of the Charges for the Use of the Hellenic Electricity Transmission System (ESMIE)”
  • November 2015 – Decision 453/2015 (in Greek) “Approval of the Required Revenue for 2016 of the Hellenic Electricity Transmission System (ESMIE) Operator”
  • December 2014 – Decision 712/2014 (in Greek) “Acceptance of the updated Regulatory Register of Fixed Assets of IPTO S.A. with reference date 31.12.2013 »
  • December 2014 – Decision 711/2014 (in Greek) “Clearance of investments, operating expenses and income from other sales of 2013 of IPTO S.A.”
  • October 2014 – Decision 572/2014 (in Greek) “Approval of the Allowed Revenue for the Regulatory Period 2015-2017, as well as the Required Revenue for 2015, of the Hellenic Electricity Transmission System (ESMIE) Operator”

Previous Decisions

  • April 2014 – Decision 195/2014 (in Greek) “Approval of the Annual System Costs for 2014, as well as the Charges for the Year 2014 for the Hellenic Electricity Transmission System (ESMIE)”
  • December 2012 – Decision 1016/2012 (in Greek) “Approval of the Annual System Costs for 2012 and 2013, as well as the Use Charges of 2013 for the Hellenic Electricity Transmission System (ESMIE)”
  • November 2011 – Decision 1456/2011 (in Greek) “Maintaining the existing Charges for the Use of the Transmission System and the Electricity Distribution Network”
  • December 2010 – Opinion 377/2011 (in Greek) “Annual Cost Budget and Unit Transmission Charges for 2011”
  • December 2009 –  Opinion 501/2009 (in Greek) “Annual Cost Budget and Unit Transmission Charges for the year 2010”
  • June 2009 –  Opinion 177/2009 (in Greek) “Annual Transmission System Cost Budget and Unit Customer System Charges for 2009”

April 2007 – Opinion 137/2007 (in Greek) “Annual Transmission System Cost Budget and Unit System Usage Charges for 2007”