December 6, 2021

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Next year, grid rents will increase "especially" - VG

Next year, grid rents will increase “especially” – VG

More expensive: They hang taller and cost more to get electricity to the door.

NVE warns that next year’s phase rents will rise sharply due to higher electricity prices and investments in the electricity phase.

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When electricity is carried from A to B, some electricity disappears on the road, which is called transmission loss. And when there is power deer, this loss is more expensive than a normal year.

The grid company must compensate for the difference between the grid loss, the amount of electricity produced and injected into the grid, and the amount of electricity distributed, which sends the bill to customers.

– We expect significant price increases for customers. NVE’s Door Longset, executive director of the Energy Regulatory Commission, told VG that it was completely independent of the new pricing model for phase rentals, which will take effect on January 1.

19.3 billion

The NVE determines how much grid companies will charge to supply electricity to your doorstep, and estimates that this revenue limit will be $ 19.3 billion next year, or 12 percent higher than the $ 17.2 billion announced and approved, respectively. Last year and this year.

– The first and most important reason for this is that electricity prices are expected to be much higher next year than expected earlier this year. A significant portion of the costs of grid companies are the purchase of electricity to offset transmission losses. This is an increase of 1.1 billion NOK, says Longset.

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– The second reason is that interest rates and inflation are higher than expected this year compared to the same period last year, in addition to good investment in the electricity sector. Interest and increased capital costs are approximately NOK 800 million, he adds.

Elvia increases by 6-7 percent

But even Income limit It is estimated to increase by 12 per cent next year, which does not mean that the phase rent will increase accordingly.

– It depends on the phase rent of the individual company. Some may have already taken into account the increased prices on the current phase rent. So it is not possible to say that the grid rental income limit will increase in all companies, but we hope that there will be a significant increase, says Longset.

Elvia, Norway’s largest grid company with 950,000 customers, says their phase rent will increase by six to seven percent next year.

– In a normal year, we lose about 150 million kroner due to the electricity lost on the road. When electricity prices are huge right now, we expect a rough loss. One billion kroner this year. So, to make up for the loss from 2021, after the start of the year, we will raise prices by six to seven percent or 3 re per kilowatt, Elvia’s information manager Morton Shaw tells Vijay.

Elvia’s phase rent this year is 46 re per KWh.