BNetzA Sets Reference Price for Energy Losses Relevant for 2012 Revenue Caps

The 8th Ruling Chamber of the Federal Network Agency (BNetzA) set the reference price for system losses relevant for the revenue caps persuant to the Incentive Regulation Ordinance (ARegV) at EUR 56.71/MWh for 2012.

The reference price is an average price that is based on prices at the energy exchange. The reference price is needed by those distribution network operators that entered into the agreement described below, in order to adjust their revenue caps individually on 1 January reflecting the price fluctuations for energy losses. To do so, the reference price is multiplied with the amount of system losses.

In 2010, BNetzA was faced with complaints from distribution network operators against BNetzA’s treatment of costs for energy losses in setting the revenue caps. To resolve this, BNetzA proposed to agree to a voluntary commitment to abandon the complaint in return for being granted to right to set revenue caps individually at the beginning of each year of the first regulation period as set out in Section 3 ARegV. The voluntary commitment precisely describes the way in which cost for system losses may be reflected in the revenue caps.

Source: Federal Network Agency

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