- Energi-Indhold-05-UK - Energitilsynet
- Energi-Indhold-05-UK - Energitilsynet
- Energi-Indhold-05-UK - Energitilsynet
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The 12 regional transmission companies transport electricity from themain transmission grid to the distribution grid.The 120 distribution companies are the final link to the consumers.They are therefore responsible for measuring the consumption of electricityat the individual customer as well as collecting taxes and chargesfor the state. If the consumer is a customer with a trading company witha supply obligation, the distribution company will collect the totalinvoice, including the price of both transport and the electricity. If, onthe other hand, the customer receives electricity from a trading companywithout supply obligation, the customer will usually receive twoseparate invoices, one from the trading company and one from the distributioncompany.In 20<strong>05</strong> DERA decided several cases on revenues for grid companies andthe regional transmission companies. The companies’ prices were frozenin real terms at the level notified at 1 January 2004. The legislation isvery clear on this point, but it means that the companies which had notincluded all the relevant costs in their prices seem to have problems.New regulation on price control of the supply obligation areaOn 1 January 20<strong>05</strong> an amendment to the provisions in the ElectricitySupply Act on DERA’s regulation of the price of supply obligation electricityentered into force. The prices for supply obligation electricityapply for one quarter at a time and the suppliers of electricity with asupply obligation must notify these to DERA before the prices enterinto force. Customers buying supply obligation electricity are primarilyprivate households and smaller enterprises.Supply obligationWhen companies report their prices, DERA is required to check thatthe prices do not exceed the market price level for corresponding consumersegments and terms of supply. If the prices reported are abovethe market price, the Authority must immediately order the companiesinvolved to reduce their prices.The market for supply obligation electricityIn the opinion of DERA, the prices notified for supply obligation electricitycannot be considered as an expression of the price level for themarket for all the prices. There are several reasons for this:• in reality, the individual suppliers of supply obligation electricity arelocal/regional monopolies within their area,• customers are not very mobile because the financial benefits fromDanish Energy Regulation Authority · Annual Report 20<strong>05</strong>17