What is investment contribution?A network company can require an investment contribution to cover the costs of connecting new customers to the network. It may also require an investment contribution for reinforcing of the network for existing customers.
The objective of the investment contribution is to make the customer responsible for the costs related to a new connection or an upgrade of the customer's existing network connection.
When can network owners require investment contribution?
A network owner can always require investment contribution for new connections to the network.
When a connection is reinforced, investment contribution may be required when the customer's demand for improved capacity or quality causes the need for reinforcement.
The network company shall inform the customer in advance that a new connection or reinforcement will entail an investment contribution.
About calculation of investment contributions
Calculation of an investment contribution is based on the cost of connecting the customer to the network. When a connection requires reinforcement in so-called radial joint networks, i.e. a clearly defined network installation (power line) which transmits electricity to the customer, a pro rata share of these costs may be included in the investment contribution.
Investment contributions shall be fixed independently of the customer's expected energy out-take and may at maximum equal the investment cost for the installation less the connecting fee. The investment cost for the installation shall equal necessary costs of connection or reinforcement, including hourly charges for personnel, machines and equipment.
The network owner may distribute the investment contribution between customers that are connected at the time the installation is brought to completion and customers that will be connected at a later point in time, but no later than 10 years after completion of the installation. The network owner may do so either by costing the investment contribution as and when new customers are connected, or by advancing the investment costs and subsequently distributing them on a proportional basis on customers that in due course become connected to the network.
The network company shall inform the customer in advance of the size and the calculation basis of the investment contribution.
