Income from the so-called The bottleneck is the income that Statnett receives when there are price differences. Such income is possible both when energy is imported and exported via international connections.
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There must be a price difference between the two markets for trading on overseas routes to be profitable. This is the price difference between the two markets between which electricity is transferred. Energy is transported from the country with the lowest price to the country with the highest price. The trading volume multiplied by the price difference is what we call bottleneck income.
In 2022, Statnett had exceptionally high bottleneck revenues. Now the government has decided that part of this revenue will be used to reduce the rent for the grid for electricity consumers in southern Norway.
Statnett had exceptionally large revenues from the bottleneck in 2022. This is due to large price differences in Norway and compared to other countries. Revenues from bottlenecks occur when energy is transferred between areas with different energy prices.
At the same time, many chain companies in southern Norway warns that they must increase transmission rent as a result of interest increases and the increased cost of energy that is lost when transmitted on the network. Network companies must cover losses in their areas at the spot price. With the high electricity prices we are seeing now, this results in increased costs.
Several companies have announced that they will have to raise their transmission rent significantly. In the case of a normal household, the increase may be over CZK 3000 per year.
Now the government is taking action
– The government has decided that 6 to 10 billion extra Statnett revenues will be allocated to the reduction transmission rent for electricity consumers in southern Norway. As a result, network companies that have increased costs as a result of higher energy prices will not have to set network rents for their customers, says Oil and Energy Minister Terje Aasland.
The government has decided that the amount of Statnett's additional income will be distributed among the network companies based on cost increases.
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- The government is taking several steps to help people with high electricity bills. The most important measure is the security system. Thanks to this move, we are also protecting ordinary people from increased transmission rent as a result of high electricity prices. It is important for us to prevent further increases in electricity costs for businesses and households in southern Norway, says Finance Minister Trygve Slagsvold Vedum.
The Energy Regulatory Authority (RME) has prepared a model proposal in which the sum of Statnett's additional income is distributed to network companies based on the increase in network losses costs. The final model design and its follow-up need to be assessed in more detail.
Source: regjeringen
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