The grid fees of transmission system operator (TSO) 50Hertz are expected to rise by seven percent in 2021 compared to 2020. The main reason for this increase are the high investments in the grid infrastructure that is needed for the energy transition. Other reasons for the higher grid fees are growing costs for congestion management as well as a slight drop in the consumption of electricity.
Dr Dirk Biermann, Chief Markets and System Operations Officer at 50Herz: “The increase in our grid fees mainly reflects the progress in grid expansion, which requires high investments. It goes without saying that these investments are indispensable for a successful energy transition. At the same time, however, we will see that the prices for congestion management will tend to drop in the medium term in step with the needed expansion of the grid. This will also benefit the different consumer groups. The increase in our grid fees would have been twelve instead of seven percent without the next step in the standardisation of the four German transmission system operators’ grid fees. The Germany-wide standardisation, which 50Hertz actively pursued in the past to ensure a fair distribution of the energy transition costs across the entire country, therefore has a downward effect on our prices for next year. This is good news.”
The standardisation of the grid fees of the four German TSOs was arranged in the German grid fee modernisation act (Netzentgeltmodernisierungsgesetz, NEMoG), which entered into force in July 2017. The act provides a gradual standardisation as of 2019, so that the grid fees of the four TSOs are fully standardised as of 2023. In 2021, the standard German grid fee share will be calculated based on 60 percent of the relevant cost base (revenue cap) of the four TSOs. The company-specific grid fee share of the TSO in question is determined on the basis of the other 40 percent.
The increase in 50Hertz’s grid fees is hardly noticeable for private household customers, as the share of the TSO grid fees in the total electricity price for private households only represents a share of around five percent. This share is higher for companies, especially for high-consumption companies that are directly connected to our transmission grid. The final grid fees for 2021 are nevertheless only fixed at the end of the year.