Data collection
RME, in its role as the national regulatory authority in Norway, is responsible for ensuring that network operators, generators, and power suppliers (licensees) act in accordance with the Energy Act and underlying regulations. Efficient regulation depends on high-quality data, and compliance monitoring is essential to achieving this.
Network operators are monopolists and are subject to economic regulation. It is crucial for the regulation of the network industry that network operations are kept separate from other competitive industries. RME uses data collection and control to verify whether network operators are acting in compliance with laws and regulations. Additionally, RME conducts inspections, data analyses, and thematic supervisions.
Data Collection and Control
The revenue caps are based on data collected from network operators. There are two main annual data collections – the economic and technical report and the TEK report. The economic and technical report provides economic data for both the cost base and cost norm, as well as technical data for the local distribution grid operators. The TEK report provides the technical data used to calculate the correct revenue cap for the regional distribution grid operators.
eRapp - Economic and Technical Report
All licensees are required to complete the economic and technical report, in accordance with section 4-4 of the NEM Regulation. They must complete the report in accordance with the Norwegian Accounting Act and GAAP, as well as other requirements set by RME. The licensees complete the report in RME's web-based reporting system, eRapp. eRapp was first used in 2001, but the submission of economic and technical reports in electronic formats has been an annual requirement since 1993.
Network operators report information regarding company ownership, income statement, balance, transferred volume and revenues, excess and deficit revenues, R&D costs, cost of transmission services, cost of salaries and pensions, other operating expenses, depreciations on assets, principles for allocation of common costs and assets, investments, cost of energy not supplied (CENS), number of kilometers of lines and cables, transformers, meters, and more. Data is reported as a company total as well as for the individual business areas: electricity sales, power production, transmission, regional distribution, local distribution, telecom business, and other activities.
To prevent errors, there are 200 automatic checkpoints in eRapp. These automatic controls check for continuity, incoherence, logical flaws, and lack of explanations in the report. Furthermore, the system requires auditor oversight. The auditor must complete a checklist, note discrepancies, approve the report, and transfer it to RME. RME then runs through a set list of checkpoints. The manual checklist changes somewhat on an annual basis but consists of approximately 60 checkpoints. RME’s manual control of all network operators takes place between May and October.
TEK – Technical Report for Regional Distribution Assets
All regional distribution grid operators must report all changes in TEK data, in accordance with section 8-1 of the NEM Regulation. TEK has been an annual requirement since 2005. TEK contains information about the number of grid kilometers (overhead lines, underground cables, and submarine cables), voltage level, material selection, grid interface, number of transformers and their performance, percentage of ownership and operational responsibilities, etc. Network operators must confirm the TEK data even if no changes have been made during the past year. When the TEK reports are received, RME checks each individual amendment to ensure the data is correct.
