The tariff requirements and calculation methodology are subject to NVE regulation.

General principles

All network companies are responsible for determining tariffs within their income cap according to the tariff structure regulation. The tariff level is to be set in a way that stimulates efficient utilisation and development of the network, and in a way that is non-discriminatory. Tariffs can be differentiated based on network related criteria that are objective and verifiable.

All tariffs are based on costs referring to the consumer’s connection point. An agreement with the network company for the connection point provides access to the entire network system and the power market. Since 2010, all houses, apartments and vacation homes are to be metered and settled individually.

According to the regulation on tariff structure, tariffs consist of a use dependent energy component set on the basis of marginal network losses and a fixed annual amount per customer. The fixed component is to cover customer-specific and network costs that are not covered by the use dependent tariff components.

 

Transmission network tariffs

The Norwegian TSO levies a locational charge for marginal losses to all users of the system. The marginal loss factors are recalculated weekly in order to reflect changing system conditions. At connection points with both outtake and input, loss rates are to be symmetrical around zero. In areas with input surplus, input has a positive loss rate and outtake a negative loss rate, and vice versa. The marginal loss rates are restricted to 15%.

Outtake in the transmission network is charged with an energy component based on marginal network losses and a fixed component that depends on the proximity to power production plants and amount of load that can be disconnected in a given response time.

 

Distribution network tariffs

Consumers in the distribution network are charged a fixed component that covers customer-specific costs and a share of other fixed costs in the network. The network companies must set separate tariffs for high and low voltage. The energy component for customers without load metering in the distribution network may in addition to network losses also cover a share of the other fixed costs in the network.

 

Generators

G-charge consists of an energy component that varies with the generator's current input of energy and a fixed component. Tariffs are set independently of end-user.

The energy component depends on the generator's current input of energy. Energy components are calculated individually for each separate input point and determined based on marginal network losses in the network system as a whole.

The fixed component for generators connected to the transmission level, set by Statnett, is to be normative for the fixed component for generators connected to the regional and distribution networks. The settled production volume is be based on the power plant’s median annual input the last 10 years. For power plants with installed capacity below 1 MW, settled volume must be maximum 30% of installed load capacity multiplied by 5,000 hours.

 

Prosumers

Since March 2010, NVE has given a general exemption to simplify the processes related to end-use customers that generate electricity for their own consumption, and in some hours have a surplus, referred to as 'prosumers'. The exemption simplifies the process of selling surplus electricity. It implies that the local network company can purchase the surplus electricity and that the prosumer pays a simplified input tariff. It is not mandatory for the network company to offer the suggested arrangement to prosumers. The exemption does not apply to generation that requires a license or generators that supply electricity to other end-users.

In 2014, NVE initiated work on incorporating provisions regarding prosumers in the current regulation. Suggestions for regulation of prosumers have been on public consultation in 2014, with an additional consultation in 2015. The new regulation will enter into force in 2017.