Various measures are required in order to guarantee the transmission of energy and to ensure the security and reliability of the Swiss high-voltage grid. These cannot be implemented without incurring costs.
Following the entry into force of large parts of the Electricity Supply Act (StromVG) on 1 January 2008, activities aimed at creating an open electricity market entered the decisive phase. In this respect, the main focus is on the subject of grid usage.
In the past, all electricity supply costs were combined and billed to the end consumer. As of 1 January 2009, the electricity bill contains a breakdown of the costs for grid usage, energy, taxes and duties. The division into energy and grid components is the result of the unbundling process prescribed in Art. 10 StromVG, which requires electricity suppliers to account for distribution system costs separately from the other links in the value chain such as power generation and sales. Furthermore, cross-subsidisation between grid operation and the other areas of activity is not permitted. The aim of these measures is to ensure the independence of grid operation and enable the costs for the grid and its operation to be reported transparently. The new Electricity Supply Act goes even further with respect to the transmission system. The national grid company Swissgrid will assume ownership of the transmission system by 2013 (Art.33 Para. 4 StromVG).
According to the new legislation, all grid operators are obliged, among other things, to allow third parties non-discriminatory access to the grid and to guarantee grid security through efficient and reliable operation of the grid. The measures required to achieve this are complex and demand good and close cooperation between all players in the electricity market.
Remaining costs such as operating and capital costs for the transmission system, remunerations to third parties as well as duties and contributions to local authorities are charged at a standard rate as grid usage charges (GUC) directly to the end consumers and distribution system operators directly connected to the transmission system. If distribution system operators or end consumers are directly connected to the transmission system, they are charged an output and working tariff as well as a fixed basic tariff per weighted feed-out point for grid usage. They will also be charged individually for costs incurred in connection with the compensation of active power losses and, since 1 January 2010, for the procurement of reactive energy. Since 2011 a distinction is also made between active and passive grid customers who are billed different tariffs for the individual ancillary service of reactive energy.
The costs for the individual ancillary services active power losses (individual AS active power losses) 2012 Costs / Revenue are charged to distribution system operators and end consumers directly connected to the transmission sysCosts
Primary control (output) Secondary control (output) Tertiary control (output) Unintentional deviation (energy) Secondary control (energy) Tertiary control (energy) MEAS (energy) Black start / island operation capability
Reactive energy
./.
tem, LTC holders (long-term contract holders, Page 1 of 2 Art. 17 Para. 2 StromVG) and merchant line operators (Art. 17 Para. 6 of the Energy Supply Act). Revenue generated through the ITC mechanism (Inter TSO Compensation meRevenue
12
Allocation
BG APP
General AS tariff
Grid operators with endconsumers and endconsumers at TS
Balance groups
./. 11 2
Tariff BG (usage volume) Tariff registration BG Indiv. AS tariff active power losses Exceptional grid access Art. 17 Para. 6 StromVG ITC compensation active power losses
Grid enhancement as per Art. 22 Para. 3 StromVV AS operating costs (Swissgrid) BGM operating costs (Swissgrid) BG registration costs (Swissgrid)
./. ./.
ENTSO-E
./.
10
1 ./. 7
AS costs for active power losses borne by contract parties as per Art. 17 Para. 2 StromVG Individual AS tariff for active power losses TS Individual AS tariff for reactive energy TS (from 01.01.10) Individual AS tariff for reactive energy TS (from 01.01.2011)
LTC holders
Grid operators at TS and endconsumers at TS participants (PPO/DSO
Active
Grid operating costs (Swissgrid) (Part grid usage) Grid capital costs (Swissgrid) Grid operating costs (TSOW) Grid capital costs (TSOW)
Remaining costs national redispatch
./. 4
Grid usage tariffs Basis: 10% exit point 60% power at TS 30% end consumer energy
Grid usage
8 6 10
ITC compensation Infrastructure Grid usage costs borne by contract parties as per Art. 17 Para. 2 StromVG Auction revenues (CH share) for Grid usage Auction revenues (CH share) for Grid investment
ENTSO-E
LTC holders
Auction participants
chanism) will be applied to reduce costs. The costs for individual ancillary services reactive energy (individual AS reactive energy) are charged to grid operators, end consumers and power plants connected to the transmission system. Swissgrid calculates the overall costs of the Swiss transmission system for the GUC. The relevant portions of ITC revenue, revenue from LTC holders and the forecast usable revenue generated in market-oriented allocation procedures (auctions) are deducted from this. The remaining grid usage costs are billed to distribution system operators and end consumers connected to the transmission system. Grid usage costs are passed on via the three tariff components: working tariff, output tariff and fixed basic tariff.
Individual ancillary services tariff for reactive energy The amount to be paid for reactive energy since 1 January 2010 is calculated from the reactive energy in excess of a tolerance threshold multiplied by the tariff for reactive energy. Since 1 January 2011, two tariffs are billed (for active and passive participants). These tariffs are also billed based on the amount of reactive energy measured when a tolerance threshold is exceeded. All billing-relevant tariff items are published on the Swissgrid website for each period in question.
Remuneration rate for active participants for reactive energy supplied according to requirements
(distribution system operators and power plants in the transmission system) Since 2010, power plants in the transmission system have been remunerated at the rate of 0.3 Rp./ kVarh for their compliant supply of reactive energy for voltage support in the transmission system. Since 2011, distribution system operators can also declare their feed-out points as active. Thus there have been two types of active participants since 2011 that actively support the voltage in the transmission system: power plants connected to the transmission system and feed-out points in the transmission system. Since 2011 active participants have also been remunerated at the rate of 0.3 Rp./ kVarh for their compliant supply of reactive energy for voltage support in the transmission system.
Simplified graphical representation of the various billing items for grid usage costs as well as general and individual ancillary services.
Example
A local distribution system operator has a distribution system at grid levels five and seven. Which costs will be billed to him? He will receive a bill from the transmission system operator for general ancillary services. These ancillary services will be billed in proportion to the volume of energy used by end consumers in his grid area at grid levels 5 to 7. The amount corresponds to the published general ancillary services tariff multiplied by the volume of electricity. Grid usage costs as well as duties and contributions to local authorities of the upstream grids are billed to him by the upstream grid operator. All in all, the local grid operator receives bills from a number of different places.