The Norwegian energy regulator proposes to strengthen Statnett’s incentives for efficiency

Transmission grid tariffs are expected to increase in the coming years due to high levels of network investment. THEMA has helped the regulator to revise the regulatory model governing Statnett’s revenues.

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11.November 2020

The Norwegian Energy Regulatory Authority (NVE-RME) has opened a consultation on proposed changes to how it sets the cost benchmark against which Statnett’s (the Norwegian TSO) revenue cap for 2021 will be set. The proposal is based on a report by THEMA commissioned by the regulator. THEMA has developed a method for benchmarking Statnett’s efficiency over time.

The method is based on the company’s physical network assets, as reported in an international study benchmarking TSOs, as well as the inclusion of HVDC assets. The efficiency assessment also considers the calculation of the company’s capital costs and the inclusion of costs linked to system operation, grid losses and cost of energy not supplied.

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