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Electricity Tariff Structure Review: International Comparisons

An Information Paper

CER/04/101 March 9th 2004

TABLE OF CONTENTS

1. INTRODUCTION 2 2. TRANSMISSION CHARGING 3

2.1 Transmission Connection Charging 3 2.2 Transmission Use of System (UoS) Charging 3 2.3 Revenue from Financial Transmission Rights. 4

Table 2 (a): Transmission Connection Charging Policy 5 Table 2 (b): Transmission Use of System Charges (TUoS) 9 Table 2 (c): Revenue from Financial Transmission Rights 16

3. DISTRIBUTION CHARGING 17 3.1 Distribution Connection Charging 17 3.2 Distribution Use of System (UoS) Charging 18

3.2.1 Tariff Customer Categories 18 3.2.2 Tariff Structure 18 3.2.3 Time of Use/Seasonal Charges 19

Table 3 (a): Distribution Connection Charging Policy 20 Table 3 (b): DUoS Tariff Customer Categories 24 Table 3 (c): DUoS Tariff Structure 26 Table 3 (d): DUoS Time-of-Use/Seasonal Tariff 29

4. SUPPLY 31 4.1 Supply Charging 31

4.1.1 Customer Switching Offerings 31 4.1.2 Energy Cost Pass-through 32 4.1.3 Customer Categories 32 4.1.4 Structure 32 4.1.5 Time of Use/Season 33 4.1.6 Competitive Offerings 33

Table 4 (a): Customer Switching Options (Market Opening) 34 Table 4 (b): Supply Generation/Energy - Cost Pass-through 36 Table 4 (c): Supply Tariff Customer Categories 38 Table 4 (d): Supply Tariff Structure 40 Table 4 (e): Supply Time-of-Use/Seasonal Tariff 43 Table 4 (f): Supply Tariffs & Competitive Offerings 45

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1. INTRODUCTION In November 2003 the Commission commenced a review of tariff structures. Specifically this review concerns the structure of the following charging policies:

Transmission Use of System Charges (TUoS) and Connection Charging Policy;

Distribution Use of System Charges (DUoS) and Connection Charging Policy;

Public Electricity Supply (PES) tariffs charged to final consumers In December 2003, the Commission published the first consultation paper of this review detailing existing tariff structures as well as objectives for the tariff structure review1. Over the coming months the Commission will be publishing potential alternative tariffs and structures for consultation. This paper, a comparision of tariffs applied in other countries and states, is intended as a guide to what alternatives may be considered as part of this review. Tariffs levied are categorised by function for cross-comparison purposes. This is presented in a table format in each section. The countries (and) states outlined in this paper include Australia (New South Wales); Britain; France; Germany; Greece; Italy; Netherlands; Norway; New Zealand; Northern Ireland (Transmission); Spain; United States (California, New Jersey, New York, Maine) and Canada (Alberta, Ontario). It should be noted that this paper is published purely for information purposes and therefore the Commission takes no responsibility for any inaccuracies. In addition, none of the information contained within should be interpreted as the opinion or advice of the Commission.

1 Existing Structure of Tariffs in Ireland1, CER/03/298, published December 19th 2003 can be found at www.cer.ie

2

http://www.cer.ie/

2. TRANSMISSION CHARGING Costs incurred by transmission businesses are recovered through both connection and use of system charges. These charges vary considerably depending on a number of factors such as, for example, the existence of Locational Marginal Pricing of energy and associated Financial Transmission Rights (FTRs). In addition the allocation of costs between generation and demand differs from country-to-country. Section 2.1 covers the connection charging policies of various countries worldwide, while section 2.2 outlines the structure or design of Transmission Use of System (TUoS) tariff of the selected countries. Finally, section 2.3 is concerned with the effect, if any, of Financial Transmission Rights (FTRs) on the transmission revenue requirement and tariffs in various countries with centralised markets i.e. gross pools. 2.1 Transmission Connection Charging A major factor facing demand and generators connecting to the tranmsission (and distribution) system is whether there is a deep or shallow charging policy in place. There is little evidence from the countries outlined in this paper (Table 2 (a)), however, to suggest that there is any consistency in the adoption of either a deep or shallow connection policy. In addition, the connection policies of the relevant transmission companies do not generally include special provisions for renewables or Autoproducers. 2.2 Transmission Use of System (UoS) Charging In Table 2 (b) a description of the transmission tariff in selected countries is provided, subdivided by the rate design, the temporal element and categories of demand customer or generator. The demand and generation component of transmission tariffs can be seen to vary considerably. In countries such as France, Germany and Italy transmission charges are levied on demand customers only. In Australia, England and Wales and the Netherlands, for example, both generation and demand pay transmission charges, although generation pays the greater portion2. From table 2 (b), voltage level is seen to be the most common means of determining customer categories for both generation and demand.

2 To see the split in the generation and demand component of transmission charges in selected European countries, please visit: http://www.etso-net.org/media/download/Benchmarking.pdf

3

http://www.etso-net.org/media/download/Benchmarking.pdf

Elements of the demand and generation tariffs include either one or more of the following: fixed standing charges (/month); capacity (/kW) charges and energy or usage (/kWh) charges. There are also many examples of countries which apply a time or seasonal differentiated component to the transmission tariff. 2.3 Revenue from Financial Transmission Rights Finally, it is useful to examine what involvement, if any, there is between the FTR auction revenue or the settlement surplus revenue and the transmission use of system revenue and tariff structure. In most of the countries covered in this note FTR revenues offset the transmission revenue requirement. Table 2 (c) outlines policies applied in a number of selected countries with a LMP system in operation.

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Table 2 (a): Transmission Connection Charging Policy

Country Company1 Policy

Australia (NSW)

Transgrid www.tg.nsw.gov.au/

Generators (incl. Co-generators and renewables) pay shallow connection charges. Distributorsconnecting to transmission system are not required to make up-front payments; all connection costsrequired for their installation are recovered through transmission tariffs. www.neca.com.au/files/necacode (Also see rates link)

England & Wales

National Grid Company (NGC) www.nationalgrid.com/uk/

Generators and loads pay shallow costs ("generation-only spur" method). NGC levies site-specificconnection charges for assets installed solely for the use of a single user or a specified group ofusers. New users pay a rental charge to the existing user of the shared asset. There are no specialprovisions for cogenerators or renewables. www.nationalgrid.com/uk/indinfo/charging/pdfs/CCM_Apr_03_(I3R1).pdf www.dti.gov.uk/energy/consultations/transcharging_doc.pdf

France RTE (EDF-)

www.rtefrance.com/index.jsp

Decree n 2001-365 relative to usage tariffs for public electricity transmission and distribution grids,introduced "shallow cost" principle for calculating the cost of connecting users to public electricitygrids. www.cre.fr/

Germany RWE www.rwe.comwww.vattenfall.de

Access to the transmission system is granted on the basis of negotiated third party access. Generators and demand pay deep connection charges (including maintenance, renewal or operating costs arising in conjunction with the direct system connection). The German Kraft-Wrme-Kopplungs-Gesetz (CHP Act) guarantees defined feed-in-tariffs for generation of green electricity out of wind, biomass, photovoltaic and small hydro plants. www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdf www.bhkw-infozentrum.de/download/kwk_gesetz.pdf

Greece PPC www.dei.gr/en/

Generators and demand pay shallow connection costs and new users pay a rental charge to the existing user of the shared asset (like in the UK). Cogeneration and renewable plants also pay shallow connection costs.

Italy GRNT www.grTN.it

Generators and loads pay all the costs of connecting to the system. There are no refunds if another customer uses the facilities. There are no special provisions for CHP/Renewables.

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http://www.tg.nsw.gov.au/http://www.tg.nsw.gov.au/http://www.neca.com.au/files/necacodehttp://www.nationalgrid.com/uk/http://www.nationalgrid.com/uk/http://www.nationalgrid.com/uk/http://www.nationalgrid.com/uk/indinfo/charging/pdfs/CCM_Apr_03_(I3R1).pdfhttp://www.dti.gov.uk/energy/consultations/transcharging_doc.pdfhttp://www.rte-france.com/index.jsphttp://www.rte-france.com/index.jsphttp://www.rte-france.com/index.jsphttp://www.cre.fr/http://www.rwe.com/http://www.vattenfall.de/http://www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdfhttp://www.bhkw-infozentrum.de/download/kwk_gesetz.pdfhttp://www.dei.gr/en/http://www.grtn.it/

Netherlands Tennet www.tennet.nl/english/

There is a specific connection tariff which covers reinforcements to connect new clients. It has a one-time component to cover capital costs and an annual component to cover maintenance expenses. There are no refunds if another customer uses the facilities. There are no special provisions for renewables or CHPs. www.tennet.nl/english/what/connections/ www.tennet.nl/english/what/power_supply/connection_tariffs.asp

New Zealand Trans Powe Both generators and loads pay connection charges. There are no special provisions for renewables (including CHP) but distribution companies (distcos) are allowed to own distributed generation (DG) (up to 5% of the network's maximum demand or 5MW). There are no limits if the DG fuel is renewable (including CHP). The government has proposed new regulations where there are no additional lines network charges or other connection costs for distributed generation less than or equal to 10kW capacity. www.transpower.co.nz/notion/share/download.asp?cid=4576&csid=8609&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F8609%5Fconnection%2Dpolicy%2D2001%2Epdf www.transpower.co.nz/notion/share3./download.asp?cid=4578&csid=9331&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F9331%5Fgenerator%2Dguide%2Doct%2D2003%2Dv2%2Epdf www.med.govt.nz/ers/electric/distributed-generation/discussion/discussion-01.html

Northern Ireland

SONI www.soni.ltd.uk/index.asp

Demand customers above 1MW and generators pay deep connection charges. Charges are based on 100% of the cost of their connection but the charges for reinforcement charges are limited to the voltage level of connection and the voltage level immediately above the connection level.

Norway Stattnet www.statnett.no/default.aspx?ChannelID=1001

Network Companies can charge new customers an investment contribution and/or a connection fee. An investment contribution is an allowed income in addition to the income cap, while the connection fee is within the cap. Generators and loads pay shallow costs; there are no special provisions for renewables or cogenerators. There are refunds within a period of no later than ten years after the installation is finished. The network company can either prepay the investments costs and set the share of the investment contribution for each customer as they get connected to the network or customers get a refund as new customers are connected to the network.

Spain REE www.ree.es/apps/home.asp

Producers and demand users make up-front payments for the capital costs of connection, including the costs of the required network reinforcements). New users (generator or demand user) connecting to the same line extension within a period of 5 years will be responsible for a pro-rata

r www.transpower.co.nz

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http://www.tennet.nl/english/http://www.tennet.nl/english/http://www.tennet.nl/english/what/connections/http://www.tennet.nl/english/what/power_supply/connection_tariffs.asphttp://www.transpower.co.nz/notion/share/download.asp?cid=4576&csid=8609&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F8609%5Fconnection%2Dpolicy%2D2001%2Epdfhttp://www.transpower.co.nz/notion/share/download.asp?cid=4576&csid=8609&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F8609%5Fconnection%2Dpolicy%2D2001%2Epdfhttp://www.transpower.co.nz/notion/share3./download.asp?cid=4578&csid=9331&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F9331%5Fgenerator%2Dguide%2Doct%2D2003%2Dv2%2Epdfhttp://www.transpower.co.nz/notion/share3./download.asp?cid=4578&csid=9331&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F9331%5Fgenerator%2Dguide%2Doct%2D2003%2Dv2%2Epdfhttp://www.med.govt.nz/ers/electric/distributed-generation/discussion/discussion-01.htmlhttp://www.soni.ltd.uk/index.asphttp://www.soni.ltd.uk/index.asphttp://www.statnett.no/default.aspx?ChannelID=1001http://www.statnett.no/default.aspx?ChannelID=1001http://www.statnett.no/default.aspx?ChannelID=1001http://www.ree.es/apps/home.asphttp://www.ree.es/apps/home.asp

payment of these costs, based on its relative use of the installed capacity. These payments will be used to reimburse the original contributor.

USA (California)

SCE www.sce.com

Generators pay deep connection charges, they get refunds if other generators use their assets. Last year, FERC issued an order that sets standardised rules for large generator interconnections. According to the rules, generators have to pay for deep connection costs and can get refunds during the following 5 years of operation. A proposed rule was also issued for small generators. www.caiso.com/docs/2001/04/02/200104021630021868.html www.caiso.com/docs/09003a6080/27/fe/09003a608027feed.pdf www.caiso.com/docs/2003/09/24/200309241422252948.pdf www.ferc.gov/industries/electric/indus-act/gi/stnd-gen/LG-Fact-Sheets.pdf www.caiso.com/docs/09003a6080/2a/4e/09003a60802a4e01.pdf

USA (PJM) PSEG www.pjm.org/services/membership/member-list.html

Until now, generators and loads pay connection charges. They are allocated a share of the system upgrades cost (see cost allocation methodology on the link below). There are no refunds, however if a new project impacts a facility already identified as requiring an upgrade, cost responsibility may be assigned to the later project. Small generators (

Alberta (Canada)

ATCO www.atco.com/companies/atco_electric.htm

New generators bear full responsibility for their own interconnection costs while new loads share the cost responsibility for interconnection costs with existing customers through the investment policy of the transmission administrator. If a customer pays for a facility and AESO uses those facilities to serve other Customers within 20 years, AESO will adjust the original contribution and assess each of the new customers' contribution. There are no special policies for renewables or CHPs. www.aeso.ca/files/SystemAccessProcessAndApplicationFormsREVISED1.pdf

Ontario (Canada)

Hydro One Networks www.hydroonenetworks.com/en/about

New generators and loads pay shallow connection charges. The Connection & Cost Recovery Agreement (CCRA) is negotiated. Hydro One issues a refund or a rebate to the generator for subsequent generator connections. The refund to the initial generator is limited to a share of the amount recovered from the subsequent generator(s) connecting within five years. www.theimo.com/imoweb/connAssess/caa_process.asp www.hydroonenetworks.com/en/regulatory/oeb_applications/ccp_oeb_filing.pdf

1 Some countries have more than one transmission company.

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http://www.atco.com/companies/atco_electric.htmhttp://www.atco.com/companies/atco_electric.htmhttp://www.aeso.ca/files/SystemAccessProcessAndApplicationFormsREVISED1.pdfhttp://www.hydroonenetworks.com/en/abouthttp://www.hydroonenetworks.com/en/abouthttp://www.theimo.com/imoweb/connAssess/caa_process.asphttp://www.hydroonenetworks.com/en/regulatory/oeb_applications/ccp_oeb_filing.pdf

Table 2 (b): Transmission Use of System Charges (TUoS)

Country UoS Design2 Season/TOD Categories

Australia Both demand and generation pay transmission tariffs. Charges todemand comprise exit, usage, and general and common servicecharges while charges to generators comprise only an entry charge.Exit and Entry charges are fixed for each demand user or generatorat each connection point. In essence, the TransGrid assetsproviding exit and entry services are identified and the annualrevenue requirement for those assets is calculated as a fixedannual amount and converted to a daily rate ($/Day). The Usagerate comprises of two parts, an energy price that is set at the samerate for peak and shoulder periods and a rate based on maximumdemand during the month. In special circumstances and for someconnection points a fixed price is applied as a daily rate. Demandalso incurs a General and Common Services charges. The generaland common services prices are the same for each connection pointand are charged using historical energy use in the two years priorto the billing period. Demand customers also have the option ofhaving this charge based on a nominated demand but substantialpenalties exist if demand is exceeded. www.transgrid.com.au/publications/TransmissionCharges2003-4_new.pdf

Same charges applyfor peak & shoulderperiods.

Charges vary according toconnection points.

England & Wales

Generators and loads pay Transmission Network Use of System (TNUoS), with a 27/73 split respectively. Charges to both generation and suppliers vary on a zonal basis. TNUoS charges are considered to have two elements. The first reflects the long-run marginal cost of a change in demand or generation at a particular point on the network. The second element reflects the overall cost of providing a secure network. Only the marginal costs vary with location and 25% of TNUoS charges are derived on a locational basis using a linear programming Transport model. Nodes with similar costs are grouped into zones and TUOS charges are based on an average of the costs in each zone.

No time/seasonal differentiation for TUoS. BSUoS are time-differentiated. www.nationalgrid.com/uk/indinfo/balancing/pdfs/bsuossimple.pdf

Different charges apply to generators and to loads by zone

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http://www.transgrid.com.au/publications/TransmissionCharges2003-4_new.pdfhttp://www.transgrid.com.au/publications/TransmissionCharges2003-4_new.pdfhttp://www.nationalgrid.com/uk/indinfo/balancing/pdfs/bsuossimple.pdfhttp://www.nationalgrid.com/uk/indinfo/balancing/pdfs/bsuossimple.pdfhttp://www.nationalgrid.com/uk/indinfo/balancing/pdfs/bsuossimple.pdfhttp://www.nationalgrid.com/uk/indinfo/balancing/pdfs/bsuossimple.pdf

Generators' tariff only includes a capacity charge (installed capacity in kW.) The suppliers must pay, for their half-hourly metered customers, a charge per kW of demand taken by the customer at times of System Demand Peak (defined as the 3 half-hours of maximum system demand in each year). For non-half hourly metered customers, suppliers pay a charge per kWh consumed during the peak period on every day. In 2002 capacity charges represented 73% of the total tariff. Charges for transmission system balancing services (BSUoS) are levied 50/50 on load and generation on total output or consumption. These charges are not part of the TNUoS. www.nationalgrid.com/uk/indinfo/charging/pdfs/2003-04_tariffs-schedule1.pdf www.nationalgrid.com/uk/indinfo/charging/pdfs/UOSCM_Apr_03_(I3R1)_Updated.pdf http://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdf www.dti.gov.uk/energy/consultations/transcharging_doc.pdf

France Only demand pay transmission charges. Transmission tariffs have a fixed, energy and capacity component. In 2002, they represented 0.2%, 46% and 54% of the total tariff respectively. The fixed charge for each customer is charged on an annual basis. The tariff is differentiated by 3 voltage levels and 4 seasonal time-of-day periods. There is both a capacity and energy component to the tariff. The demand user can choose between two versions of the scale: Firstly, the very long utilisation version, with a higher power related component, but with a lower charge for energy. Secondly, the short utilisation version, with a lower power related component, but with a higher charges for energy. This tariff covers system services. www.rtefrance.com/htm/fr/offre/telecharge/comprendre_le_tarif_30_10_2002.pdf http://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdf

4 f-d er

d nce

seasonal time-oay periods wint

weekdays, winter weekends and nights, summer weekends an

ights for both apacity and nergy.

Network charges vary by voltage (extra high, high B and high A) and utilisation (short & long). Customers can choose their utilisation (and pay higher capacity and lower energy charges or vice versa).

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http://www.nationalgrid.com/uk/indinfo/charging/pdfs/2003-04_tariffs-schedule1.pdfhttp://www.nationalgrid.com/uk/indinfo/charging/pdfs/2003-04_tariffs-schedule1.pdfhttp://www.nationalgrid.com/uk/indinfo/charging/pdfs/UOSCM_Apr_03_(I3R1)_Updated.pdfhttp://www.nationalgrid.com/uk/indinfo/charging/pdfs/UOSCM_Apr_03_(I3R1)_Updated.pdfhttp://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdfhttp://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdfhttp://www.dti.gov.uk/energy/consultations/transcharging_doc.pdfhttp://www.rtefrance.com/htm/fr/offre/telecharge/comprendre_le_tarif_30_10_2002.pdfhttp://www.rtefrance.com/htm/fr/offre/telecharge/comprendre_le_tarif_30_10_2002.pdfhttp://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdfhttp://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdf

Germany Only demand customers pat transmission tariffs. Customers with a direct connection to the grid pay a metering charge (in /month) and UoS Charges with 2 alternatives: annual demand system (with annual peak demand /kW and energy ct/kWh components) or a monthly demand system (with a peak monthly demand charge /kW and energy ct/kWh components). Customers can opt for reserve grid capacities, charged in /kW and reactive power (in ct/kvarh). Peak demand is measured as h mean value in kW. Annual utilisation time is the quotient of annual energy and peak demand. The monthly charge depends on peak monthly demand and monthly energy consumption. http://www.rwetransportnetzstrom.com/main_en.aspx?PgId=181&pg=/price_sheet_4.asp

No Season/TOD ifference for the rid utilisation osts

Charges, including metering, vary by voltage (extra high, high, medium and low) and utilisation time. End-user tariffs are usually differentiated (see section on distribution tariffs).

Greece Generators and demand customers pay a use of system fee per MW. Cogeneration plants and renewables do not pay that fee. Nevertheless, the annual use of system fees corresponding to cogeneration and renewable plants are calculated and are debited to a separate account kept by DESMIE, named as "surcharges account". Final consumers are charged these costs.

Tdsae or e

ad

ariffs are ifferentiated by eason (peak, day nd night). For ach month and fach day of the

week, these zones re differently etermined.

Charges vary by voltage (low, medium and high) and for each category there are different tariffs by type of consumer i.e. industrial, agricultural, domestic etc.

Italy Consumers pay transmission tariffs that include fixed, demand and energy charges. They represented 1.2%, 61% and 25% of the total tariff. There is a specific fee for ancillary services applied to generators and consumers. Producers pay for losses (around 12% of the total tariff). http://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdf

P

hp

rent c

eak, high, medium and low

ours. It is ossible to

contract a diffeapacity for each

month.

Four different voltage categories (low, medium, high and extra high voltage)

Nether lands

Transport charges at the EHV/HV level are borne by electricity producers (25% of costs) and load (paying the remaining 75%). Charges for producers are per kWh. Transport charges for load have various billing determinants, which include kW of contracted demand, kW of maximum monthly demand, and kW

No time ifferentiation for nergy. It is ossible to ontract different

depc

Different charges apply to different voltage levels (extra high, high, intermediate, medium and low voltages) based on

dgcwww.rwe.com

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http://www.rwetransportnetzstrom.com/main_en.aspx?PgId=181&pg=/price_sheet_4.asphttp://www.rwetransportnetzstrom.com/main_en.aspx?PgId=181&pg=/price_sheet_4.asphttp://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdfhttp://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdf

of maximum weekly demand. Transport charges for load also vary by utilisation. Charges include a charge for reactive energy (kVA). There are separate charges for system services (AS). http://www.dte.nl/en/Images/13_7196.pdf

c

apacity for each month.

cascading principle. Each network operator at EHV/HV level sets charges based on his own costs and as a result tariffs vary by network operator (and by location, since different network operators are active in different, non-overlapping geographic areas).

New Zealand

All customers (generators and distributors) pay an annual connection charge to recover the revenue requirement associated with connection to the core grid assets. Customers who off take pay an interconnection charge. Customers who inject electricity into the grid system in the South Island pay an HVDC charge. All charges are per kW (Peak monthly demand or injection). www.transpower.co.nz/notion/share/download.asp?cid=4601&csid=8672&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F8672%5Fpgcs%2D2003%2Epdf

Constraint and osses vary (LMP) l

Constraint and losses are charged through LMP. Charges vary according to location.

Northern Ireland

TUoS charges are levied 25% on generators and the Power Procurement Business (PPB) and 75% on suppliers. The generator is charged on a fixed capacity basis per month. The supplier is charged through both a fixed Standing charge and on an energy basis. Statement of Charges for the use of Northern Ireland Electricity plc Electricity Transmission and Distribution System 2003/2004

Norway Energy (re/kWh), capacity (re/kWh) and load (kr/kW) components. Tariffs are paid both at entry and exit points (generation and load pay split was about 30/70 in 2002). The capacity charge is implemented as a postage stamp, while the energy-based charge (mainly losses) is node dependent. The kWh and kW charges represent about 50/50 of the transmission tariff.

The energycomponent is time and point-differentiated (winter day,

winter

Charges vary by voltage level (3 voltage levels). Low-voltage charges vary by entry point (county)

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http://www.dte.nl/en/Images/13_7196.pdfhttp://www.transpower.co.nz/notion/share/download.asp?cid=4601&csid=8672&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F8672%5Fpgcs%2D2003%2Epdfhttp://www.transpower.co.nz/notion/share/download.asp?cid=4601&csid=8672&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F8672%5Fpgcs%2D2003%2Epdfhttp://www.transpower.co.nz/notion/share/download.asp?cid=4601&csid=8672&mdid=&file=%2Fupload%2Fnotion%2Fsectionimages%2F8672%5Fpgcs%2D2003%2Epdf

www.statnett.no/default.aspx?ChannelID=1195&DocumentID=10873 www.statnett.no/Files/Open/Tertial_02_1.03_eng_nett.pdf www.nve.no/modules/module_109/publisher_view_group.asp?iEntityId=3627&iMenuId=882&strBoxColor=FFFF99&strYAH=>NVE>%3Cb%3EEnergy%3C%2Fb%3E>Market+regulation>Tariffs&lang=e

night/weekend and summer.)

Spain Only loads pay for transmission usage. Charges include capacity and energy components. AS are not included in the transmission tariffs. Customers may be subject to surchages or discounts for reactive energy, applied as a % on total bill. The capacity charge represents about 30% of the total tariff.

Lc pt f d ftpvdy hat v f

d s

ow voltage ustomers can oor tariffs defineor one, two or hree daily eriods. High oltage (>1kV) are efined in six early periods taries with type o

day (weekday/ weekend) aneason (high,

medium, low)

Six voltage levels. Five low-voltage rates, five high-voltage general, three high voltage for traction uses.

(Cali charges. Wheeling (low and high voltage) customers pay a $/MWh fee that varies by TO and take-out point. Tariffs have an access fee to recover the capital costs and usage fees to recover congestion costs. Rates can include a $/day and/or $/month per customer charge, a seasonal demand charge (in $/kW), a facilities-related charge (in $/kW), and/or a transmission energy charge (in cents/kWh). Demand is the maximum average kW input during any 15-minute interval during the month). www.caiso.com/docs/09003a6080/27/fe/09003a608027feed.pdf

On, mid and off-p l

Wholesale tariffs include: s

al,

eak and seasona

HV and LV wheeling accescharges, LV access charge and utility-specific rate. (End-users transmission charges include residentigeneral and street lighting.)

T

USA fornia)

All loads withdrawing energy from the ISO grid pay access

www.sce.com/sc3/005_regul_info/005a_tariff_book/005a3_rates/default.htm www2.sdge.com/tariff/document6.pdf

USA (PJM) Point-to-Point and Non-firm service. Charhere are 3 forms of service: Network Integration,

ges are in $/MW and vary by point of Charges vary by time and location

Point-to-point short term (daily, weekly or monthly)

13

http://www.statnett.no/Files/Open/Tertial_02_1.03_eng_nett.pdfhttp://www.nve.no/modules/module_109/publisher_view_group.asp?iEntityId=3627&iMenuId=882&strBoxColor=FFFF99&strYAH=>NVE>%3Cb%3EEnergy%3C%2Fb%3E>Market+regulation>Tariffs&lang=ehttp://www.nve.no/modules/module_109/publisher_view_group.asp?iEntityId=3627&iMenuId=882&strBoxColor=FFFF99&strYAH=>NVE>%3Cb%3EEnergy%3C%2Fb%3E>Market+regulation>Tariffs&lang=ehttp://www.nve.no/modules/module_109/publisher_view_group.asp?iEntityId=3627&iMenuId=882&strBoxColor=FFFF99&strYAH=>NVE>%3Cb%3EEnergy%3C%2Fb%3E>Market+regulation>Tariffs&lang=ehttp://www.nve.no/modules/module_109/publisher_view_group.asp?iEntityId=3627&iMenuId=882&strBoxColor=FFFF99&strYAH=>NVE>%3Cb%3EEnergy%3C%2Fb%3E>Market+regulation>Tariffs&lang=e

delivery. Loads also pay usage charges comprising congestion, losses and ancillary services components. Usage prices are at market prices. The congestion component is the difference in locational prices (in $/MWh). Non-firm customers don't pay for congestion. http://oasis.pjm.com/rpdoc.html http://oasis.pjm.com/rpdoc.html#chapter1

LMP)

and long-term (>1 year), network integration and non-firm service (weekly, daily, hourly)

NYISO Transmission service charge (to revenue requirement) is at a fixed $/MWh. Congeare charged at locational marginal prices (in $/MWh). Separate ancillary services charges. Transmission service charges (for withdrawals only). Non-firm customers don't pay for congestion. (RG&E delivery rates to final customers have a fixed component and a $/kWh component.) www.nyiso.com/services/oatt.html

LMP. (RGE's transmission rates fc y by ps k)

There are 2 forms of service: Network

nd (Firm

ax

U

or large ustomers vareak/ houlder/off-pea

Integration Service aPoint-to-Point serviceand Non-Firm (hourly m24 consecutive hours). (RG&E delivery rates vary by user type and voltage. Customers can choose TOrates.) www.nyiso.com/oasis/index.html

AS charges are market-based. Nstar's rates to final customers include: Customer ($/month), demand ($/kW), energy ($/kWh). Demand is the max 15-min demand (kW or 90% kVa) during the month. www.isone.com/smd/transmission_services/tariffs/tariff_specific_business_practices/General_Business_Practices/SMD_Business

ongestion, AS). (Nstar has easonal & on/offeak ifferentiation.)

NEISO transmission seNetwork Service, IntePoint-to-Point Transmission Service (Firor Non-Firm), Transaction Specific Point-to-Point Through Transmission Service (Import, Through and Out. Rates also varduration (daily, weekly, monthly, yearly). (Nstar has different voltage

(

USA (NYISO)

recover the annual stion and losses

www.rge.com/rateFrmSet.html

USA (NEISO)

Depending on the type of service, NEISO rates are in $/kWh or $/kW of scheduled or reserved capacity. Congestion, losses and

_Practices_Section_1_06262003.pdf www.nstaronline.com/ss/customer_service/rates/schedule.asp

NEISO uses LMP (losses, c

s pd

rvices include Regional rnal

m

y by

14

http://oasis.pjm.com/rpdoc.htmlhttp://www.rge.com/rateFrmSet.html

classification and end usage rates.) www.iso-ne.com/smd/transmission_services/tariffs/tariff_specific_business_practices/

Alberta (Canada)

AESO's transmission tariff for demand includes: Interconnection Charge ($/MW of peak demand or contracted capacity and $/MWh), Operating Reserve Charge ($/kWh) and Other System Support Services Charge (in $/MW of peak demand plus $/MVa). For supply: Interconnection Charge ($/MWh), Losses Charge (in $/MWh), Operating Reserve Charge ($/kWh) and Regulated Generating Unit Connection Costs (for regulated units only). www.aeso.ca/files/2003_Approved_Rate_Schedules.pdf

Tcpp

he Reserve harge is a ercentage of the ool price.

AESO's categories include: Demand Transmission, Supply Transmission, Export, Import.

Ontario (Canada)

Rates have 2 components: network service rate and line & transformation connection service rate. Each component has 2 charges: Demand ($/kW) and energy (/kWh). Demand is the higher of the CP demand or 85 % of the customers NCP during peak period. For distribution utilities and customers with embedded delivery points, the billing determinant is the peak demand from 7am to 7 pm. www.hydroonenetworks.com/en/regulatory/rate_schedules/ www.hydroonenetworks.com/en/regulatory/rate_schedules

end-users: Residential, farm, industrial, sentinel lights & streetlights. Each classification has sub-categories: population density (urban, non-urban, high and normal) and single phase, three phand subtransmission. A separate rate schedule includes direct custome(average monthly demands >5 MW) and Distribution Utilities. www.hydroonem/en/regulatory/rate_schedules/

http://europa.eu.int/comm/energy/electricity/publications/doc/bench_trans_tarif_en.pdf

/appendix_F1_retailtx_core.pdf www.hydroonenetworks.com/en/regulatory/rate_schedules/appendix_F2_retailtx_lv.pdf

Different classifications by

ase

rs

networks.co

2 The share of charges for European countries can be found on:

15

http://www.iso-ne.com/smd/transmission_services/tariffs/tariff_specific_business_practices/http://www.iso-ne.com/smd/transmission_services/tariffs/tariff_specific_business_practices/http://www.iso-ne.com/smd/transmission_services/tariffs/tariff_specific_business_practices/http://www.hydroonenetworks.com/en/regulatory/rate_schedules/http://www.hydroonenetworks.com/en/regulatory/rate_schedules/http://www.hydroonenetworks.com/en/regulatory/rate_schedules/

Table 2 (c): Revenue from Financial Transmission Rights (FTRs)

Country Policy Australia Currently, settlement residue auctions (SRA) are available for hedging price difference risks in inter-regional trade. The

receipts from SRA offset transmission use of system charges. They are allocated to Network service providers (see page 44 inwww.nemmco.com.au/operating/sra/550-0244.pdf). There are no FTRs yet. www.nemmco.com.au/operating/sra/sra.htm www.nemmco.com.au/operating/sra/550-0244.pdf

New Zealand

There are no FTRs yet. Transpower will allocate income back to customers when they implement FTRs. Currently, allcustomers are allocated a share of the transmission rentals received (losses and congestion) corresponding to the connectionand grid charges that they pay. www.med.govt.nz/ers/electric/ftr/

USA (California)

Under the Revised MD02, CAISO proposes to replace the existing path-specific FTR model with a new Congestion RevenueRights (CRR) model adopting a source-to-sink instrument. There will be a single balancing account for CRR revenuesurpluses and deficits. Funds in the balancing account will be disbursed to CRR holders at the end of each month. www.caiso.com/docs/2003/10/28/200310281401132393.pdf

USA (PJM) Excess revenues at the end of the year are distributed to network service and point to point transmission customers (% ofdemand charges). www.pjm.com/contributions/pjm-manuals/pdf/m06v4.pdf

USA (NYISO)

TCCs excess revenues (deficit) are credited against the revenue requirement. www.nyiso.com/markets/tcc_auctions/2003_spring.html

USA (NEISO)

Prorate all FTRs in affected hours for residual inadequacy.

Ontario (Canada)

Excess Transmission Rights (TR) revenues and congestion rents are first used to pay off any short-term borrowing incurredin managing the TR settlements. If there is still a credit, revenues are paid back to market participants prorated on the basisof the energy they have withdrawn from the market.

16

http://www.nemmco.com.au/operating/sra/sra.htmhttp://www.nemmco.com.au/operating/sra/550-0244.pdfhttp://www.med.govt.nz/ers/electric/ftr/http://www.caiso.com/docs/2003/10/28/200310281401132393.pdfhttp://www.pjm.com/contributions/pjm-manuals/pdf/m06v4.pdfhttp://www.nyiso.com/markets/tcc_auctions/2003_spring.html

3. DISTRIBUTION CHARGING In most countries the distribution element of the final end-user tariff is the single most sizable cost outside energy costs. While practice varies considerably from country to country, distribution entities, in general, recover costs accrued via connection charges and Use-of-System (UoS) charges based on various revenue recovery methods. 3.1 Distribution Connection Charging In general terms policy applied in regard to distribution connection charging, as with transmission, is characterised by a variety of variables and customer attributes. These are as follows:

Generator/Demand Customer Differentiation; Deep Vs (Semi-) Shallow Charging; Full Vs. Partial Payment for Connection; Refunds for Existing Line Users; Ongoing Operations & Maintenance Charges

While distribution connection policy in Ireland is clearly divided by demand and generator customers, practice in other jurisdictions often requires all connecting entities to pay on the same basis. For instance, in Ireland, the vast majority of demand customers connecting to distribution system pay semi-shallow3 connection charges. Conversely, connection charges in Australia are founded on a deep connection charging policy as specified in the market rules. While a customer connecting in Britain pays deep costs, customers in Norway and France pay shallow charges. Policy in Alberta in Canada is similar to that exercised in Ireland in that generator customers pay full deep costs while demand customers pay a contribution to shallow costs. In the United States, the customer is liable to pay any costs that are not covered by a connection allowance, a sum that is pre-determined by the relevant regulator. This often takes the form of a footage4 allowance as in New York. Alternatively, the state of Maine requires customers to pay a minimum payment to compensate existing customers for the use of existing line. There is little international evidence of the favourable treatment of renewable generation connections. 3 For an explanation of the terms semi-shallow and shallow connection costs, please refer to Existing Structure of Tariffs in Ireland3, CER/03/298. 4 A connection allowance is an allowance allocated to customers connecting to the network. The allowance is subtracted from the full cost of the connection and the customer pays the remainder. This allowance may be based on, for instance, a per metre/foot of line allowance. This is what is meant as a footage allowance. Alternatively the allowance could be a fixed monetary amount by category, location etc.

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Finally, in some cases, customers are required to pay ongoing O&M charges to cover the cost of maintaining the network. Table 3 (a) outlines distribution connection policies applied in a number of selected countries. 3.2 Distribution Use of System (UoS) Charging Costs not recovered from customer connection contributions are, for the most part, levied by way of Use-of-System charges. These are charged to customers according to a number of parameters namely:

DUoS Customer Categories; DUoS Structure/Components; Time of Use (Diurnal) & Time of Year (Seasonal)

3.2.1 Tariff Customer Categories Customers, for the purpose of charging, are categorised according to common shared characteristics such as:

connection to a certain voltage level; type or nature of customer i.e. domestic, commercial etc.; and load factor/specific

Examples of voltage/customer type-related categories include Residential, Small Commercial and Industrial to name a few. Load factor/specific categories include Unmetered Supplies (UMS) and such idiosyncratic categories as, in Alberta for instance, farms and oilfields. 3.2.2 Tariff Structure As described in the 1st consultation paper of this review, CER/03/298, DUoS charges in general, recover costs according to how they are allocated in terms use of the system. Energy or load-related (kWh) costs accruing to costs caused by the ongoing use of the system are recovered through energy charges. Capacity requirements, and the cost that these impose, are recovered via such methods as (a) metered demand charges based on maximum demand (kWh) in any one month or/and (b) capacity requirements as agreed between a customer and the operator, normally an annual (kW) charge. Other specific charges relate to customer-attributed costs that are unrelated to the use of energy. These include such items as metering and servicing. Finally, reactive or low power factor penalties are often imposed based on kVARh. Practice in most jurisdictions is to charge a fixed charge and an energy charge on domestic customers reflecting the fact that domestic customers meters, in

18

many cases, do not measure time-of-use demand. In Germany metering and billing costs are levied separately to other standing or fixed customer charges. Larger customers also face capacity-related charges reflecting the larger burden, per head, these customers place on the system. In the case of franchise (non-eligible) customers, countries such as France and Italy do not publish distribution charges separate from supply tariffs. As with connection charging, DUoS charges in New Zealand vary from area-to-area. In the Netherlands, separate tariffs are designed to recover specific percentages of revenue required. DUoS charges in the Netherlands also vary by location. Conversely, tariffs in France are uniform according to each customer category. 3.2.3 Time of Use/Seasonal Charges As use of the system varies by time of day and season, so do costs. TOU and seasonal charges seeks to accurately recover this. Implementation of TOU/seasonal distribution system pricing is evident in Italy where the kWh charge varies by peak, high, medium and off-peak. In addition, DUoS charging in Norway as well as in California (SDG&E) have in place TOU charges that go beyond peak/off-peak and winter/summer differentiation. The use of Shoulder periods, in addition to the peak period is also in use in Australia for most non-domestic customers. Overall, TOU charging is more evident in supply tariffs (see section 3). Tables 3 (b) to 3 (d) outline international practices in regard to DUoS TOU charging.

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Table 3 (a): Distribution Connection Charging Policy Distribution (Country)

Regulator Policy

Energy Australia (NSW, Aust.)

IPART www.ipart.gov.nsw.au

Connection charges are deep in Australian National Electricity market (NEM). The federal code administrator, NECA requires new generators entering the market to pay for deep connection costs. Metering and some connection works are now "contestable" in Australia. Energy Australia must pass through to an Embedded Generator the avoided Customer TUoS usage charges. http://www.neca.com.au/files/necacode/ http://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/ES5/$FILE/es5.pdf

London Energy (UK)

OFGEM www.ofgem.gov.uk

Generators pay deep connection cost plus capitalised repair and maintenance (typically around 35%) at sub-transmission voltages. Currently, embedded generators pay the full (deep) cost of connection to the local distribution system, including the costs of reinforcement across the system. Currently the regulator is studying the possibility of charging embedded generators only for dedicated connection assets and recovering the balance in the form of distribution use of system charges. This discussion is part of the Distribution Price Control Review 4 and the issue is expected to be resolved in 2005. This shallow and deep arrangement is under discussion as part of Distribution Price Control Review 4 and the issue will be resolved in 2005. Demand customers pay shallow connection charges, i.e., the costs of the assets specifically required for their connection. The reinforcement costs are regarded as general load growth and recovered from all demand users through the DUoS. Initial contributors can get reimbursed from connection charges levied on subsequent connections. http://www.ofgem.gov.uk/temp/ofgem/cache/cmsattach/5429_Elec_DPCR_second_consult_maindoc_18dec03.pdf

EDF (France) CRE http://www.cre.fr/

In 2001, Decree n 2001-365, relating to use the transmission and distribution grids, introduced "shallow cost" principle for calculating the cost of connecting users .

20

http://www.ipart.gov.nsw.au/http://www.neca.com.au/files/necacode/http://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/ES5/$FILE/es5.pdfhttp://www.ofgem.gov.uk/http://www.ofgem.gov.uk/temp/ofgem/cache/cmsattach/5429_Elec_DPCR_second_consult_maindoc_18dec03.pdfhttp://www.ofgem.gov.uk/temp/ofgem/cache/cmsattach/5429_Elec_DPCR_second_consult_maindoc_18dec03.pdfhttp://www.cre.fr/

RWE (Germany) The costs for setting up a connection for feed-in/extraction or expanding a connection are borne by the generator/demand. In addition, generators and demand must pay for all additional individually attributable costs incurred (maintenance, renewal or operating costs arising with the connection). http://www.bmwi.de/Navigation/Technologie-und-Energie/Energiepolitik/liberalisierung.html http://www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdf http://www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdf

Enel Distribuzione (Italy)

Autorita http://www.autorita.energia.it/inglese/index.htm

Customers are required to pay for part of the cost for new connections. The amount charged is fixed for residential customers and depends on parameters such as power required, voltage and distance from the network for non-residential customers. No special provisions apply for renewables or CHP. According to Delibera 50/02, producers above 1 kV pay for building the connection to networks. Generators can either ask the distributor to build the connection or build the connection on their own. http://www.autorita.energia.it/docs/dc/dc_tariffevett.pdf

ENECO (Netherlands)

DTe http://www.dte.nl/nl/

The connection tariff for generators and consumers consists of two cost elements: initial investment costs and maintenance costs. The Tariff Code stipulates that the connection tariff shall consist of at most three tariff carriers: (1) a one-off contribution based on the initial investment costs; (2) a periodic charge by way of compensation for the capital expenditures of reusable assets; (3) a periodic charge by way of compensation for maintenance costs. http://www.dte.nl/en/Images/13_7196.pdf

United Networks (New Zealand)

Non Connection charges are negotiated by customers on a case-by-case basis.

Viken (Norway) NVE In Norway most of the transmission network is meshed, so investment contribution (see transmission table) is mainly applied to the distribution network. Generators and loads pay shallow costs; there are no special provisions for renewables or cogenerators.

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http://www.bmwi.de/Navigation/Technologie-und-Energie/Energiepolitik/liberalisierung.htmlhttp://www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdfhttp://www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdfhttp://www.autorita.energia.it/inglese/index.htmhttp://www.autorita.energia.it/inglese/index.htmhttp://www.autorita.energia.it/inglese/index.htmhttp://www.autorita.energia.it/docs/dc/dc_tariffevett.pdfhttp://www.dte.nl/nl/http://www.dte.nl/en/Images/13_7196.pdf

REE (Spain) Network tariffs cover both transmission and distribution. See transmission table http://www.cne.es/

Customers pay the cost of connection through regulated connection charges ( per contracted kW) Charges vary with both contracted capacity and voltage level. If the line has excess capacity the applicant may request a refund when new users connect to the line, for a 5-year period. Generators looking for connection to the distribution system must build the connection facilities on their own (i.e., they are responsible for the dedicated connection costs).

SDG&E (USA) CPUC www.cpuc.ca.gov

Line extensions are provided to customers without charge provided that the connection allowance covers the installed cost (Network owner/operator's estimated installed cost Allowances < 0). The customer is responsible for paying the cost difference up-front. Refunds are made by the network owner/operator, based on allowances calculated for new customers connecting to the line. Generators are responsible for any costs reasonably incurred by SDG&E in providing, operating, or maintaining the Interconnection Facilities and Distribution System improvements required solely for their interconnection. http://www.sdge.com/tm2/pdf/ERULE15.pdf#page=1

PSEG (USA) BPU http://www.bpu.state.nj.us

A standard allowance (2,500 ft of line) applies to residential line extensions. For longer connections the customer may choose between making a (refundable) up-front payment, or a "monthly revenue guarantee," equal to a guaranteed level of kWh per month times the customer's applicable distribution rate. The monthly payments are not eligible for refund. Refunds of up-front contributions are made as new residential customers connect to the line, for up to a maximum of 10 years. No standard allowances apply to commercial and industrial customers - they may be required to pay for the full cost of connection up-front. These deposits may be refundable depending upon the actual customer's load over time.

RG&E (USA) NYPSC http://www.dps.state.ny.us/

NYPSC operate a charging scheme based on Footage allowances (e.g. per meter $ allowance), meaning that up-front payment is required for material and installation cost relating to any portion of the distribution line, service line and appurtenant facilities in excess of footage allowances.

CMP (USA) Maine PUC http://www.state.me.us/mpuc/

Customers pay full up-front payment of construction costs, based on a design estimate. New single-phase customers connecting to the line must pay (up-front) Development Incentive Payments (DIPs): US$1 per foot of shared line; minimum payment: US$500. DIPs are used to provide refunds to the first customer. http://www.cmpco.com/prices/rates/sect07.pdf

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http://www.cne.es/http://www.cpuc.ca.gov/http://www.sdge.com/tm2/pdf/ERULE15.pdfhttp://www.bpu.state.nj.us/http://www.bpu.state.nj.us/http://www.dps.state.ny.us/http://www.dps.state.ny.us/http://www.state.me.us/mpuc/http://www.state.me.us/mpuc/http://www.cmpco.com/prices/rates/sect07.pdf

ATCO (Canada) EUB http://www.eub.gov.ab.ca/

Demand Customers: ATCO has different maximum contributions for extensions and customers pay costs above that threshold. When a new customer shares a portion of, or all of, the costs of an existing extension ATCO refunds a portion of the contribution based on the amount of extension shared and the ratio of the customer's operating load to the total operating load. Generator Customers: Generators must pay all incremental costs associated with connecting the generator to the distribution system. http://www.atcoelectric.com/B_Tariffs/Terms_and_Conditions/2003-07-14_Final_Wires_Amended_T&Cs.pdf

Hydro One (Canada)

OEB http://www.oeb.gov.on.ca/

Local distribution companies and direct customers (demand with a demand > 5MW) pay a fixed CAN$/KW of peak demand for connecting. Embedded distribution companies pay a CAN$ per Km of line within the service area. A CAN$ per kW of delivery point non-coincident demand charge applies for connecting into the shared HV or LV stations if another customer connects within 5 year connection horizon as stated in the Distribution System Code. There are no special provisions for CHPs or renewables. http://www.hydroonenetworks.com/en/regulatory/rate_schedules/appendix_A2_LV.pdf http://www.oeb.gov.on.ca/documents/dsc_rev.pdf

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http://www.eub.gov.ab.ca/http://www.eub.gov.ab.ca/http://www.atcoelectric.com/B_Tariffs/Terms_and_Conditions/2003-07-14_Final_Wires_Amended_T&Cs.pdfhttp://www.atcoelectric.com/B_Tariffs/Terms_and_Conditions/2003-07-14_Final_Wires_Amended_T&Cs.pdfhttp://www.oeb.gov.on.ca/http://www.oeb.gov.on.ca/http://www.hydroonenetworks.com/en/regulatory/rate_schedules/appendix_A2_LV.pdfhttp://www.oeb.gov.on.ca/documents/dsc_rev.pdf

Table 3 (b): DUoS Tariff Customer Categories

Distribution (Country)

Regulator Policy

Energy Australia IPART www.ipart.gov.nsw.au

Charges vary by voltage levels (low, high and subtransmission). There are special tariffs for certain uses (irrigation, public lighting etc.)

London Energy (UK) OFGEM www.ofgem.gov.uk

Charges vary by voltage (low and high). Residential and business users can be unrestricted or economy depending on their usage pattern.


Charges vary by voltage (low and high). Residential users can be unrestricted or economy and business customers can be standard or economy depending on their usage pattern and metering capacity. The standard or unrestricted tariff has one unit rate. The economy tariff has two or more rates, applying depending on the time of use. http://www.edfenergy.com/server/uploads/approved/LPN%20C4%20UoS%20April%202004%20Final.pdf

RWE (Germany) There are two main end-user customer groups: customers with and without quarter hourly metering (usually small customers). Charges vary by voltage level, phase, meter and utilisation. http://www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdf



Customers are categorised as residential, non-residential, medium voltage, high voltage, public lighting and extraordinary (low and medium voltage customers with contracts whose life is less than one month and that can be renewed up to two months). http://www.enel.it/eneldistribuzione/tariffe_elettriche/mercato_vincolato_casa.asp

ENECO (Netherlands)


Charges and billing determinants vary by voltage level.

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http://www.edfenergy.com/server/uploads/approved/LPN C4 UoS April 2004 Final.pdfhttp://www.edfenergy.com/server/uploads/approved/LPN C4 UoS April 2004 Final.pdfhttp://www.vdn-berlin.de/global/downloads/Publikationen/vv2plus_engl.pdfhttp://www.enel.it/eneldistribuzione/tariffe_elettriche/mercato_vincolato_casa.asp


Non All rates vary by area or zone. Unmetered public lights and other unmetered connections, low voltage (residential and small commercial - varies by usage and controlled/non), high voltage small (controlled, uncontrolled, night support, day/night), high voltage large and subtransmission. http://www.unitednetworks.co.nz/upload/document/030408%20CL%20RS%20MB%20Mod%2015%20%2016.pdf

Viken (Norway) NVE DUoS tariffs vary by voltage.


Same as for transmission access charges.


Domestic (residential), commercial & industrial (5 voltage levels), lighting, others (stand-by service, etc). http://www.sdge.com/regulatory/tariff/current_tariffs.shtml


Domestic (residential), small commercial and industrial, large (secondary, primary, Subtransmission and High Voltage), Unmetered Supplies.


Domestic (residential), general service small, general service large (6 voltage levels). Time of Use rates are available as well.


Domestic (residential) (basic, area lighting, TOU, etc) and business (general service, Time of Use, by voltage). http://www.cmpco.com/prices/rates/schedules.html


Domestic (residential), small, large general service, oilfield, farms, lighting.

Hydro One (Canada) OEB http://www.oeb.gov.on.ca/

Residential, farm, industrial, sentinel lights & Unmetered Supplies. Each classification has sub-categories: population density (urban, non-urban, high and normal) and single phase, three phase and subtransmission.

25

http://www.unitednetworks.co.nz/upload/document/030408 CL RS MB Mod 15 16.pdfhttp://www.unitednetworks.co.nz/upload/document/030408 CL RS MB Mod 15 16.pdfhttp://www.sdge.com/regulatory/tariff/current_tariffs.shtmlhttp://www.cmpco.com/prices/rates/schedules.html

Table 3 (c): DUoS Tariff Structure Distribution (Country)

Regulator Policy


Suppliers pay DUoS charges. These may include the following: access charge (fixed), usage charge (per kWh), capacity (per kW of half-hour peak annual demand) and demand (per kW of peak half hour monthly demand). Metering is a component of the network access charge. http://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/Network+Price+list+FY03/$FILE/Network+Price+List+2002_03.pdf http://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/ES7Sept02/$FILE/ES7Sep02.pdf

London Energy (UK)


Customers pay a Fixed standing charge per period (e.g. per quarter or month) and a unit charge per kWh of electricity delivered. Depending on the category of customer, there are several other charges, e.g. per kVA (highest kVA in past year), or per kVArh of reactive power.


Access tariffs apply only to eligible consumers wanting access to the network. Prices are set on a national level and based on consumption and voltage rather than distance. The capacity charge is based on the subscribed demand and peak capacity at four points in the year (summer/winter-on/off peak). EDF doesn't publish distribution-only charges for non-eligible customers.

RWE (Germany) System charges for small customers include a standing charge (/month), an energy rate (ct/kWh) and a metering/billing charge that varies by single/three phase and one/two meters (in /month). http://www.rwetransportnetzstrom.com/main_en.aspx?PgId=181&pg=/price_sheet_6.asp

PPC (Greece) RAE PPC, the incumbent utility, has not yet unbundled its accounts so its not yet clear which part of PPC tariffs applied to final consumers corresponds to the distribution network usage fees.



Enel doesn't publish distribution-only rates. The distribution-supply tariffs include a fixed charge, a demand charge (/kW) and an energy charge (cent /kWh) with several tiers. http://www.enel.it/eneldistribuzione/tariffe_elettriche/definizioni_casa.asp http://www.enel.it/eneldistribuzione/tariffe_elettriche/mercato_libero_casa.asp

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http://www.ipart.gov.nsw.au/http://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/Network+Price+list+FY03/$FILE/Network+Price+List+2002_03.pdfhttp://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/Network+Price+list+FY03/$FILE/Network+Price+List+2002_03.pdfhttp://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/ES7Sept02/$FILE/ES7Sep02.pdfhttp://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/ES7Sept02/$FILE/ES7Sep02.pdfhttp://www.rwetransportnetzstrom.com/main_en.aspx?PgId=181&pg=/price_sheet_6.asphttp://www.enel.it/eneldistribuzione/tariffe_elettriche/definizioni_casa.asphttp://www.enel.it/eneldistribuzione/tariffe_elettriche/mercato_libero_casa.asp

ENECO (Netherlands)


Transport charges are paid exclusively by demand (not by generators). The MV tariff must have a charge per kW of contracted demand (which recovers 25% of costs allocated to MV), a charge per kW of maximum monthly demand (which recovers 25% of costs), and a charge per kWh (to recover the remaining 50% of costs). The LV tariff consists of a demand charge (which recovers 16% of the costs allocated to LV), and a per kWh charge (to recover the remaining 84%). http://www.dte.nl/en/Images/13_7196.pdf http://www.dte.nl/en/Besluiten/Besluiten_elektriciteit/Archief_Besluiten_Elektriciteit/default.asp?url=http%3A%2F%2Fwww%2Edte%2Enl%2Fnl%2Fbesluiten%2Fbesluiten%5Felektriciteit%2Farchief%5Fbesluiten%5Felektriciteit%2


There is no formal, independent regulation of tariffs in New Zealand and there is no mandated tariff structure. Tariffs in general have the following structure: fixed components c/day) and variable charge (c/KWh). In addition, tariffs vary by location or zone. Distribution charges are levied on suppliers, who invoice for the supply of electricity inclusive of distribution charges. Large customers charges are in c/kVA/month. http://www.unitednetworks.co.nz/upload/document/030408%20CL%20RS%20MB%20Mod%2015%20%2016.pdf

Viken (Norway) NVE DUoS tariffs can include a fixed component (kr/yr), a load component (kr/kW/year) and a variable component (re/kWh). www.viken.no


Same as for transmission access charges (binomial)


All domestic DUoS tariffs have a fixed monthly charge and a kWh charge with different structures according to the rate. Industrial rates include kW (NCP), kWh and kVAR charges. http://www.sdge.com/regulatory/tariff/elec_residential.shtml

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http://www.dte.nl/en/Images/13_7196.pdfhttp://www.dte.nl/en/Besluiten/Besluiten_elektriciteit/Archief_Besluiten_Elektriciteit/default.asp?url=http%3A%2F%2Fwww%2Edte%2Enl%2Fnl%2Fbesluiten%2Fbesluiten%5Felektriciteit%2Farchief%5Fbesluiten%5Felektriciteit%2http://www.dte.nl/en/Besluiten/Besluiten_elektriciteit/Archief_Besluiten_Elektriciteit/default.asp?url=http%3A%2F%2Fwww%2Edte%2Enl%2Fnl%2Fbesluiten%2Fbesluiten%5Felektriciteit%2Farchief%5Fbesluiten%5Felektriciteit%2http://www.dte.nl/en/Besluiten/Besluiten_elektriciteit/Archief_Besluiten_Elektriciteit/default.asp?url=http%3A%2F%2Fwww%2Edte%2Enl%2Fnl%2Fbesluiten%2Fbesluiten%5Felektriciteit%2Farchief%5Fbesluiten%5Felektriciteit%2http://www.unitednetworks.co.nz/upload/document/030408 CL RS MB Mod 15 16.pdfhttp://www.unitednetworks.co.nz/upload/document/030408 CL RS MB Mod 15 16.pdfhttp://www.viken.no/http://www.cne.es/http://www.sdge.com/regulatory/tariff/elec_residential.shtml


The delivery rate includes a service charge, distribution kW and kWh charges and all adjustment charges. Domestic (residential) customers rates do not have a kW charge. For large customers the kW is the monthly peak demand. www.pseg.com/companies/pseandg/schedules/pdf/electric_tariff.pdf


The distribution rates include a customer charge ($/month), a demand charge ($/KW of billing demand) and an energy charge ($/kWh)


Basic domestic/residential (2-tier $ per first 100 kWh, c/kWh thereafter). General service fixed, kW and per kWh (kW=highest 15-minute integrated demand) http://www.cmpco.com/prices/rates/sect01.pdf


Customer ($/month), demand ($/kW) charge and energy (c/kWh). KW is defined as the peak demand during the billing period. Demand and energy charges may have 2-tiers depending on the rate. http://www.atcoelectric.com/B_Tariffs/Tariffs/2003_Rates/031201_AE_2003_Interim_DT_Schedules.pdf

Hydro One (Canada)


All customers have a fixed monthly charge ($/month) and a volumetric charge. Small customers' volumetric charge is per kWh. Customers with kW meters pay a per kW volumetric charge (instead of the kWh charge).

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http://www.pseg.com/companies/pseandg/schedules/pdf/electric_tariff.pdfhttp://www.cmpco.com/prices/rates/sect01.pdfhttp://www.atcoelectric.com/B_Tariffs/Tariffs/2003_Rates/031201_AE_2003_Interim_DT_Schedules.pdfhttp://www.atcoelectric.com/B_Tariffs/Tariffs/2003_Rates/031201_AE_2003_Interim_DT_Schedules.pdf

Table 3 (d): DUoS Time-of-Use/Seasonal Tariff

Distribution (Country)

Regulator Policy


Some charges vary by time of use

London Energy (UK)


Peak/off-peak and seasonal


Two seasons and peak/non-peak

RWE (Germany)

No time differentiation



For high voltage rates the kWh charge varies by peak, high, medium and off-peak.

ENECO (Netherlands)


For LV customers, the kWh charge may be split in a time of use charge for off-peak and regular hours.


Some charges vary by capacity and day/night.

Viken (Norway) NVE The energy component is time and point-differentiated (winter day, winter night/weekend and summer.)

Spain Network tariffs cover both transmission and distribution. See transmission table http://www.cne.es/

Low voltage access tariffs are defined for one, two or three daily periods. High voltage (>1kV) are defined in six yearly periods.


Most rates vary by season. Commercial and industrial customer DUoS tariffs vary by time (super-peak/peak/off-peak). Hourly rate available. http://www.sdge.com/regulatory/tariff/current_tariffs.shtml

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http://www.ipart.gov.nsw.au/http://www.cne.es/http://www.sdge.com/regulatory/tariff/current_tariffs.shtml


All rates vary by season (summer/winter).


No seasonal or time-differentiation


Some charges vary by season, voltage and TOU.


Some charges vary by season, voltage and TOU.

Hydro One (Canada)


No seasonal or time-differentiation.

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4. SUPPLY In Ireland, as in many of the countries previewed in this paper, regulated supply tariffs, in addition to transmission and distribution charges, are set by the state regulator. However, the approach taken when setting supply tariffs differs from that used when setting networks tariffs in a number ways. One difference is that supply is a competitive activity and as such independent supplier offerings must compete with the regulated ESB (PES) supply tariff. A second difference is that the regulated supply tariff is essentially a bundled tariff that comprises energy, transmission, distribution and a retail margin. As a result, as well as being characterised by various customer categories, components, time differentiation (TOU/season), the setting of supply tariffs and the structure used to best reflect supply tariff objectives, adds a number of parameters above and beyond those presented by the transmission and distribution businesses, namely how generation pass-through costs are treated. Overall, supply tariffs are structured to take account of the following:

Customer Switching Options - Extent of Retail Market Opening; Energy Cost Pass-through; Customer Categories; Components/Structure; Time-of-Use (TOU) or Season; Competitive Offerings

Tables 4 (a) to 4 (f) outline policy in regard to the above areas. 4.1 Supply Charging The PES tariff is a bundled tariff recovering costs faced by ESB PES in terms of TUoS, DUoS, supply, supply margin, PSO, and energy pass-though costs. 4.1.1 Customer Switching Offerings The supply tariff offered by regulated utilities is influenced by the degree of market opening. For instance, in markets that have been liberalised since the mid-1990s, such as Britain and New Zealand, there is no supply tariff as such. On the other hand, tariffs continue to be set in countries that have only recently liberalised their retail markets. This includes most of states of the European Union, excluding Britain and the Nordic countries, full retail market opening is due to be in place by July 2007. States in between stages, such as the Australian states, continue to set regulated tariffs for small customers with full retail competition for larger customers.

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Moreover, several states in the United States, including California, continue to restrict retail compettiton resulting in the offering of a bundled tariff to all customers. the lack of success of retail competition in some sections. 4.1.2 Energy Cost Pass-through As over half of the final supply tariff is comprised of an energy-cost element, the commercial arrangements (CfDs) a supplier has with generation plant is crucial in setting tariffs. From 2002, supply tariffs in Alberta Canada are adjusted every month to pass-through wholesale energy costs faced by the supplier. Norwegian customers on variable tariffs (85% of customers) face a tariff that can change with 2-weeks notice. At the other end of the spectrum, Norwegian customers can choose a fixed 3-year contract. Customers in Ontario, Canada are sold electricity at a rate of CAN 4.3c/kWh, a figure enforced by the government to be in place for the foreseeable future. Overall, in most of the states surveyed, the energy-cost pass-through element of regulated tariffs is typically set once a year. 4.1.3 Customer Categories The number of tariff categories typically covers such groups as domestics, small commercial and industrial, larger customers by voltage class, unmetered supplies, time-of-use, maximum demand and so on. In the more established markets, each supplier sets customer categories. Finally, in some states, such as in New South Wales in Australia, the division between domestic and commercial customers is rigourously defined. 4.1.4 Structure The number of tariff components, and thus tariff offerings, varies considerably, with the more established markets having the greatest number of components available to customers. In Britain, these include dual fuel tariffs, variable rate tariffs as well as quick payment tariffs, to name a few. Norwegian customers may contract to pay a spot tariff based on the wholesale market. A similar approach is taken in Alberta Canada where supplier of last resort customers pay the average half-hour spot price plus an administrative fee. In addition, in Australia, Green tariffs are offered with a green premium included. Overall as with DUoS charges, most countries charge domestics a fixed charge (kW) charge and an energy unit (kWh) charge while larger customers may pay fixed, energy, demand and reactive energy charges. Block tariffs are in use in many states. Conversely the use of inverse Block Tariffs, whereby the first specified block amount of kWh consumed is cheaper

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(c/kWh) than subsequent units. This is currently in use for TOU customers in NSW, Australia and for all small customers in Ontario, Canada. 4.1.5 Time of Use/Season Over half the states previewed in this paper offer tariffs based on shoulder periods as well as according to peak and off-peak periods, provided the necessary metering is in place. On another level, the hours that constitute the peak vary by state. For instance, in New South Wales in Australia, peak charges apply from 14.00-20.00 weekdays, shoulder charges from 07.00-14.00 and 20.00-22.00 weekdays, and off-peak at all other times including weekends. 4.1.6 Competitive Offerings The extent to which suppliers are allowed to compete with each other including the regulated supplier depends somewhat on competitive pressures. While most regulated suppliers surveyed offered tariffs above and beyond a plain tariff several states, including Italy and Australia allows for the offering of different types.

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Table 4 (a): Customer Switching Options (Market Opening)

Supplier (Country) Policy Energy Australia (Australia) Full Retail Competition (FRC) began in New South Wales in Jan 2002 after years of retail competition for

large customers. Bundled customers are only small retail customers (customers with an annual usage < 140,000 kWh) in EA's network area who have not entered into a negotiated customer supply contract. http://www.energy.com.au/

London Energy (UK) Competition has been open to all customers since 1998. As of Jan 2003, 39% of the total UK households have switched. http://www.ofgem.gov.uk/temp/ofgem/cache/cmsattach/3833_DCMR04july.pdf

EDF (France) Only customers with consumption >7 GWh are eligible to choose a supplier different than EDF. http://www.edf.fr/index.php4?coe_i_id=12125

RWE (Germany) The electricity market has been fully opened de jure at the wholesale and at the supply level since 1998. www.europa.eu.int

DEI (Greece) All customers connected to the medium and high voltage are eligible customers meaning they have the right to choose supplier other than PPC. All low voltage consumers have to be supplied by PPC.

Acquiriente Unico (Italy) Italy initially opened the market to customers above 30 GWh/year. In January 2001 the threshold was lowered to 20 GWh/year and to 9 GWh/year in January 2002. Since April 29, 2003 the market is open for customers consuming more than 0.1GWh/year. A draft Law in discussion at Parliament will open the market for all customers other than residential from July 2004; all customers will be eligible from July 2007. http://www.acquirenteunico.it/eng/home/procedure/home.asp

ENECO (Netherlands) Industrial and business customers can choose their energy supplier. Domestic (residential) customers will have choice from 1st July 2004. http://www.dte.nl

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http://www.energy.com.au/http://www.ofgem.gov.uk/temp/ofgem/cache/cmsattach/3833_DCMR04july.pdfhttp://www.edf.fr/index.php4?coe_i_id=12125http://www.europa.eu.int/http://www.acquirenteunico.it/eng/home/procedure/home.asphttp://www.dte.nl/

Contact Energy (New Zealand) All New Zealand customers can choose their supplier. The Electricity Act of 1992 allowed trading (removal of franchises) for customers with annual demand less than 0.5 GWh from April 1993, and for all customers from 1 April 1994. Suppliers pay for distribution and transmission. www.mycontact.co.nz

Hafslund (Norway) All customers in Norway can choose their supplier since 1995. The network company is the provider of last resort only on bankruptcy cases and for a brief period. There are no bundled rates all customers pay to the network company and their chosen supplier. http://www.nve.no/FileArchive/185/market%20access%20report.pdf

Iberdrola (Spain) All consumers connected at > 1,000 V have choice since 2000. http://www.cne.es/consumidores.html

SDG&E (California) Customers cannot choose their own supplier. Direct access was suspended in 2001. http://www.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/9812.htm http://www.sdge.com/index.shtml

PSEG (New Jersey) Customers can choose their supplier since 1999. PSEG is just the supplier of last resort in New Jersey. http://www.bpu.state.nj.us/home/PSEGList.shtml http://www.pseg.com

RG&E (New York) Supply/retail access for all customers began in 2001. Customers that switch receive shopping credits tied to the going market price. http://www.dps.state.ny.us/Electric_RA_Migration.htm http://www.eia.doe.gov/cneaf/electricity/chg_str/new_york.html

CMP (Maine) All customers in Maine have retail access. CMP offers standard offer service. http://musashi.ogis.state.me.us/scripts/esrimap.dll?name=PUCNewMap&cmd=ngi.FindSuppliers&tn=ElectricUtilities&fn=NGICompany&v=Extents&us=ngi.ReturnSuppliers&qt=r&fv=Central+Maine+Power+Co.

ATCO (Alberta) Yes. Supply/retail competition for all customers began January 1st 2001. http://www.atcoelectric.com/

Hydro One (Ontario) In Dec 2002 the legislation capped the rates at the Nov 02 level until 2006. http://www.hydroonenetworks.com/en/customers/residential/rates_pricing/

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http://www.mycontact.co.nz/http://www.nve.no/FileArchive/185/market access report.pdfhttp://www.cne.es/consumidores.htmlhttp://www.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/9812.htmhttp://www.sdge.com/index.shtmlhttp://www.bpu.state.nj.us/home/PSEGList.shtmlhttp://www.pseg.com/http://www.dps.state.ny.us/Electric_RA_Migration.htmhttp://www.eia.doe.gov/cneaf/electricity/chg_str/new_york.htmlhttp://musashi.ogis.state.me.us/scripts/esrimap.dll?name=PUCNewMap&cmd=ngi.FindSuppliers&tn=ElectricUtilities&fn=NGICompany&v=Extents&us=ngi.ReturnSuppliers&qt=r&fv=Central+Maine+Power+Cohttp://musashi.ogis.state.me.us/scripts/esrimap.dll?name=PUCNewMap&cmd=ngi.FindSuppliers&tn=ElectricUtilities&fn=NGICompany&v=Extents&us=ngi.ReturnSuppliers&qt=r&fv=Central+Maine+Power+Cohttp://www.atcoelectric.com/http://www.hydroonenetworks.com/en/customers/residential/rates_pricing/

Table 4 (b): Supply Generation/Energy - Cost Pass-through

Supplier (Country) Policy Energy Australia (Australia)

Tariffs may vary during the year. EA has to publicly announce any changes before they take place.

London Energy (UK)

Prices change periodically at the discretion of the supplier (depending on the contract).

EDF (France)

Prices can change periodically.

RWE (Germany) Tariffs are set, on average, on a yearly basis. RWE does not exclude the possibility it might raise prices during the year, but so far they have never done so. If they would raise prices during the year, they would make it public beforehand. http://www.rwe.com http://www.rwe.com/generator.aspx/property=Data/id=27326/RWE__private__direct.pdf

Acquiriente Unico (Italy) Acquiriente Unico purchases electricity for the captive market and resells it to distributors for the supply to small customers and to customers who do not choose a competitive supplier. http://www.acquirenteunico.it/eng/chisiamo/procedure/attivita.asp

ENECO (Netherlands) Tariffs are set on average on a yearly basis. Tariffs are not likely to change quicker than that and if they do, all customers are notified in time. DTe sets tariffs for captive customers on a yearly basis. www.eneco.nl/utrecht/klantenservice/tarieven/index.html www.dte.nl/nl//Besluiten/Besluiten_elektriciteit/default.asp?ComponentID=1005&SourcePageID=1039#1

Contact Energy (New Zealand)

Rates can change at any time and customers are notified at least 14 days before the change takes place.

Hafslund (Norway) Consumers can choose between fixed and variable contracts for energy. 85% of residential customers are under the variable option, where prices can change anytime given a 2-week notice. http://www.ssb.no/english/subjects/08/05/10/es/200304/bye.pdf

Iberdrola (Spain)

Doesn't change during the year.

SDG&E (California) No http://www.sdge.com/tm2/pdf/EECC.pdf

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http://www.rwe.com/http://www.rwe.com/generator.aspx/property=Data/id=27326/RWE__private__direct.pdfhttp://www.acquirenteunico.it/eng/chisiamo/procedure/attivita.asphttp://www.eneco.nl/utrecht/klantenservice/tarieven/index.htmlhttp://www.dte.nl/nl//Besluiten/Besluiten_elektriciteit/default.asp?ComponentID=1005&SourcePageID=1039http://www.ssb.no/english/subjects/08/05/10/es/200304/bye.pdfhttp://www.sdge.com/tm2/pdf/EECC.pdf

PSEG (New Jersey) Yes. The basic generation service (BGS) is procured through an auction process. Commercial/business customers can choose to have their electric commodity priced on an hourly basis. http://www.pseg.com/media_center/pdf/EnergyAuctionPP.pdf http://www.pseg.com/customer/business/industrial/hourly.html

RG&E (New York) Yes. Customers that do not change suppliers pay bundled rates. In 2005 RG&E will unbundle its rates and offer a 24-month commodity price.

CMP (Maine) Yes. For customers under Standard Offer, energy price changes monthly and as contracts with suppliers expire. http://www.state.me.us/mpuc/ElectricSupplier/Standard%20Offer%20Rate.htm

ATCO (Alberta) Variable. ATCO passes through the market rate for energy. http://www.atcoelectric.com/C_CurrentRate/RRO_Current_Prices_Business.asp

Hydro One (Ontario) Final end-user tariffs are fixed at CAN 4.3 cents/kWh for all customers using less than 250 MWh/year. http://www.hydroone.com/en/electricity_industry/government_action_plan/

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http://www.pseg.com/media_center/pdf/EnergyAuctionPP.pdfhttp://www.pseg.com/customer/business/industrial/hourly.htmlhttp://www.state.me.us/mpuc/ElectricSupplier/Standard Offer Rate.htmhttp://www.atcoelectric.com/C_CurrentRate/RRO_Current_Prices_Business.asphttp://www.hydroone.com/en/electricity_industry/government_action_plan/

Table 4 (c): Supply Tariff Customer Categories

Supplier (Country) Policy Energy Australia (Australia) Residential (all time, green and controlled load) and business (low and high voltage, pumping and

controlled load) http://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/BUSINESS_price_sheet_03.pdf/$FILE/BUSINESS_price_sheet_03.pdf

London Energy (UK) Residential, small and large businesses. http://www.london-energy.com/

EDF (France) Low voltage (3-36 kV) tariff classes are: Households & agriculture, commercial, public services, TOU and universal. Medium voltage (36-250 kV) and high voltage (>250 kV) vary by usage patterns. http://www.edfonline.com/ieceFO/content/pdf/fr/tarif_bleu.pdf

RWE (Germany) Private and business customers, industrial customers, municipal utilities and local authorities are the main customer groups. http://www.rwe.com http://www.rwe.com/generator.aspx/property=Data/id=27326/RWE__private__direct.pdf)

PPC (Greece) Low voltage (non-eligible consumers) tariff classes are: Households, commercial, industrial, agricultural, newspapers & squares and streets lighting. Medium voltage (eligible consumers) tariff classes are: General use, Industrial and Agricultural. There are two high voltage (eligible consumers) tariffs. One provides for cheaper capacity charge in cases extra (reserve) capacity is utilised, though under more expensive energy charge.

Acquiriente Unico (Italy) Low voltage: low-voltage domestic consumers (residential customers); low-voltage public lighting; low-voltage eligible customers for other uses; low-voltage non-eligible customers for other uses; Medium Voltage: medium-voltage public lighting; medium-voltage eligible customers for other uses; medium-voltage non-eligible customers for other uses; High voltage: high-voltage eligible customers; and high-voltage non-eligible customers. The regulator sets tariffs for low voltage customers up to 3 kW. http://www.autorita.energia.it/docs/01/228-01.htm

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http://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/BUSINESS_price_sheet_03.pdf/$FILE/BUSINESS_price_sheet_03.pdfhttp://www.energy.com.au/ea/earetail.nsf/AttachmentsByTitle/BUSINESS_price_sheet_03.pdf/$FILE/BUSINESS_price_sheet_03.pdfhttp://www.london-energy.com/http://www.edfonline.com/ieceFO/content/pdf/fr/tarif_bleu.pdfhttp://www.rwe.com/http://www.rwe.com/generator.aspx/property=Data/id=27326/RWE__private__direct.pdfhttp://www.autorita.energia.it/docs/01/228-01.htm

ENECO (Netherlands) ENECO distinguishes between different classes: private customers, small and large business customers and horticultural customers. http://www.eneco.nl/

Contact Energy (New Zealand) Domestic (residential) and business http://www.mycontact.co.nz/view?page=/forhome/home

Norway Domestic (residential) customers, cottages, commercial customers (not max demand measured) and industrial customer (max demand measured)

Iberdrola (Spain) Low voltage, short, medium and long duration, traction, agricultural, large industrial customers (>100MW), distributors. http://www.cne.es/pdf/rdtarifa.pdf

SDG&E (California) Domestic (residential), commercial & industrial (5 voltage levels), lighting, others (stand-by service, etc). http://www.sdge.com/regulatory/tariff/current_tariffs.shtml

PSEG (New Jersey) Domestic (residential), small commercial and industrial, large (secondary, primary, subtransmission and High Voltage), Unmetered Supplies. http://www.pseg.com/companies/pseandg/schedules/pdf/electric_tariff.pdf

RG&E (New York) Domestic (residential), general service small, general service 100 kW min, general service 12 kW minGeneral Service Large (6 voltage levels), area lighting, buy-back, Unmetered Supplies.

CMP (Maine) Domestic (residential)/small non-residential, medium and large http://www.state.me.us/mpuc/ElectricSupplier/Standard%20Offer%20Rate.htm

ATCO (Alberta) Domestic (residential & farms), commercial, industrial & oilfield, streetlights & sentinel lights http://www.atcoelectric.com/C_CurrentRate/RRO_Current_Prices_Business.asp

Hydro One (Ontario) Domestic (residential), farm, industrial, sentinel lights & Unmetered Supplies. Each classification has sub-categories: population density (urban, non-urban, high and normal) and single phase, three phase and subtransmission. http://www.hydroonenetworks.com

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http://www.eneco.nl/http://www.mycontact.co.nz/view?page=/fo

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