1 - 14 May 2003 - CIRED

CIRED - Barcelona

May 14, 2003

Round table "Impact of deregulation on

the electric distribution business"

Konstantin Staschus, Ph.D., Managing DirectorVerband der Netzbetreiber - VDN - e.V. beim VDEW

De-regulation experience in Germany - Network fee comparisons, data exchange

2 - 14 May 2003 - CIRED

Contents

• German system operators and the VDN

• Non-discriminatory system access

– Network access fees - Association Agreements

– Cartel Office activities

– Network fee comparisons

– Customer switching - data exchange

• Is the German market working - prices and reliability

• Outlook

3 - 14 May 2003 - CIRED

Germany‘s federal system: diverse and strongly interconnected

• 4 TSOs (control areas), ~ 50 regional and 850 municipal DSOs

• Mixed ownership, partly foreign

Frankfurt

StuttgartNürnberg

München

Dresden

Hamburg

LeipzigBerlin

DortmundEssenKöln

BremenHannover

Karlsruhe

Operating voltage380 kV220 kVLinesConvertor stationsMajor substationsCitiesHVDC overhead line/cable

Herzogen- aurach

Energievers.Inselsberg (EVI)*)

Stand: Januar 2002

Karte derStromnetzbetreiber

Verband der Elektrizitätswirtschaft –VDEW– e.V.

Stromnetzbetreiber

Regelzonen

Lindau

Niedermohr

Bruchweiler-Bärenbach

Ramsen

Schlachters

FischbachHochspeyerKaiserslautern-Süd1

2345 Wattenheim

4

Hettenleiderheim6Dirmstein7Heuchelheim8Großniedesheim9Hessheim1

0 Frankenthal11Fußgönnheim1

2 Rödersheim-Gronau13 Hochforf-Assenheim14 Dannstadt-Schauernheim15 Wachenheim16 Deidesheim17 Meckenheim18 Schifferstdt19 Waldsee20

Süwag Energie AG

Bietigheim

Zwiefalten

Gammertingen

HettingenBitz

Calw

Sulz

BalingenAlbstadt

ÜW Eppler

Trossingen

Tuttlingen

Stockach

Überlingen

Aach

Jestetten

Engen

Friedrichshafen

Baienfurt

Pfullendorf

Krauchenwies Saulgau

MengenSigmaringen

Radolfzell

GEW CONTIGAS Singen

EKS

EnBW Regional AG

EW BraunsbachSüwag

EnBW Regional AG

energis GmbH

Pfalzwerke AG

Konstanz

Steißlingen

Kusel

Weilerbach Otterberg

Burgbernheim

Neustadt

Wilhermsdorf

Langenzenn

Heilsbronn

Neuendettelsau

LichtenauWindsbach

Gunzenhausen

Ansbach

Fränkisches Überlandwerk AG

EnBW OstwürttembergDonauRies AG ODR

Lech-Elektrizitätswerke AG

Steinhagen

Gütersloh

Diepholz

Obern-kirchen

Rinteln

Lemgo

Bad Salzuflen

Oerlinghausen

Blomberg

Bad Pyrmont

Steinheim

Warburg

Borgentreich

Beverungen Uslar

Stw. Neustadt a. Rbg.

GarbsenHannover

Hann. Münden

Oelde

Lippstadt

Halle

Thüga AG

Bremen

Kassel

Licht- und

Erding

Fürsten-feldbruck

Parten-kirchen

E.-Vers.Offenbach AG

Frankfurt

AVU

Eschwege

Düssel- dorf

Mainz

Wiesbaden

RWENet

EBT

Augs- burg

Garmisch-

Groß-Gerau

Nordhausen

Sondershausen

Homberg

Marburg

Fritzlar

Wolfhagen

WitzenhausenBad Sooden-Allendorf

Eschwege (Niederhone)

Wanfried

Mühlhausen

Frankenberg

Biedenkopf

Herborn

Wetzlar Gießen

Haiger

Weilburg

Limburg

Butzbach

Sangershausen

Bernburg

Dessau

Lutherstadt Wittenberg

Zerbst

Staßfurt

Quedlinburg

Halberstadt

Wernigerode

Leinefelde

HeilbadHeiligenstadt

Duderstadt

Bovenden

Northeim

Einbeck

St. AndreasbergBraunlage

Bad Sachsa

Bad Lauterberg

Seesen

Goslar Bad Harzburg

Wolfenbüttel

Bad Salzdetfurth

Peine

HildesheimBraunschweig

Wolfsburg

Gifhorn

Uelzen

Soltau

Walsrode

Verden

Achim

Ottersberg

Rotenburg

Scheeßel

Schneverdingen

Lilienthal

Osterholz-Scharmbeck

Zeven Buchholz

Buxtehude

BremervördeBremerhaven

StadeWittmund

Wilhelmshaven

Norderney

Borkum

Emden

Norden

Winsen

Geesthacht

Schwerin

Güstrow

Stralsund

Greifswald

Waren

Neubrandenburg

Neustrelitz

Wittenberge

Neuruppin

Schwedt

Eberswalde

Strausberg

Oranienburg

Potsdam

Ludwigsfelde

Luckenwalde

Haldensleben

Stendal

Havelberg

Burg

Schüttorf

Rheine

OchtrupGronau

Ahaus

Emsdetten

Greven

Münster

bevern

BorkenBocholtRhede

Emmerich

Kleve

Goch

Geldern Dinslaken

Gelsenkirchen

Herten

BochumOberhausen

Coesfeld

Dülmen

Haltern

Ennigerloh

Ahlen

Hamm

KamenLünen

Werl Soest

WickedeFröndenbg.

Unna

Dortmund

Witten

Hagen

Lüdenscheid

Iserlohn

SchwerteMenden

Versmold

Lengerich

Hasbergen

Teutoburger

Osnabrück

Bramsche

Energie Netzwerk eG

Wipperfürth

Ratingen

Bonn Bad Honnef

Troisdorf

Brühl

Windeck

Nümbrecht

Reichshof

mbH

Nettetal

GrefrathKempen

ENNI EnergieWasser GmbH

Duis-burg

Krefeld

TönisvorstWillich

Viersen

Hilden

Velbert

Monheim

SolingenRem-scheid

Wuppertal

BelkawJülich

Düren

Neuwied

Selters

Cochem

Olpe

Attendorn

Trier

Kirchheimbolanden

Grünstadt

Bobenheim-RoxheimBockenheim

Bayrisch Gmain

Haimhausen

Freising

Oberding

Isen

BuchbachDorfen

Dachau

Grafing EdlingWasserburg

Schonstett

Holzkirchen Bad Aibling

VagenRosenheim

EndorfSeebruck

Kraiburg

Mühldorf

TögingOedmühle

Engelsberg

Frasdorf

NußdorfBrannenburg

Oberaudorf

Kiefersfelden

Bad Tölz

Ohlstadt

Farchant

Mittenwald

Prem

Böbing

Peißenberg

Dießen

Landsberg

Hinde-

langOberst-

dorf

Ober-staufen

hofen

RettenbergMittelberg

OyRöthenbach

Mühlheim

Geln-hausen

Bad Orb

FrammersbachPartenstein

Aschaffenburg

Goldbach-Hösbach

GlattbachKahl

Großkrotzenbg.

Hanau

Lohr-Karlstadt

Kirn

Bad Kreuznach

Alzey

Ingelheim Langen

Dreieich

Neu-Isenburg

Magdeburg

Schönebeck

Leck

Niebüll

Energieversorgung SyltGmbH,Westerland

Bredstedt

HusumSchleswig

Satrup

Eckernförde

Rendsburg

Heide

GardingHelgoland

Kronshagen HeikendorfSchönkirchen

RaisdorfBordesholm

Nortorf Eutin

Neustadt

WilsterItzehoe

BarmstedtGlückstadt

ElmshornQuickborn

Norderstedt Bad Oldesloe

PinnebergWedel

Wertheim

LottstettenHohentengen

Waldshut-Tiengen

Bad Säckingen Laufenburg

Main-bernheim Scheinfeld

KitzingenDettelbach

Würzburg

CadolzburgZirndorf

Stein

Schwabach

Spalt Georgensmünd

Roth

Neumarkt

Pleinfeld Thalmässing

Greding

Wendel- stein

FeuchtAltdorf

LeinburgRöthenbach

LaufRückersdorf

Nürnberg

Erlangen

RöttenbachEffeltrich

Egloffstein

Forchheim

HeroldsbachHemhofen

Ebermannstadt

Bamberg

Pottenstein

Hersbruck

HollfeldBayreuth

Amberg

Tirschenreuth

Wunsiedel

Weißenstadt

Selb

HofSchauen- stein

HelmbrechtsMünchberg

Stammbach

Nordhalben

Sonneberg

RodachWeißenbrunn

NeustadtRödental

Ebersdorf

Zeil

HaßfurtSchweinfurt

Bad Kissingen

Nüdlingen

Bad BrückenauBad Neustadt

Meiningen SuhlIlmenau

Arnstadt

HünfeldSchlitzLauterbach

Bad Hersfeld

BebraWildeck

Eisenach

Gotha Erfurt

HammelburgGemünden

Bad Langensalza

Bad Nauheim

WeimarApolda

Jena

Stadtroda Gera

Eisenberg

Neustadt

Pößneck

Rudolstadt

Saalfeld

ZeulenrodaGreiz

ReichenbachSchneeberg

Aue

Schwarzenberg

Annaberg-Buchholz

Chemnitz

Freiberg PirnaZittau

Löbau

GörlitzBautzen

Kamenz

Döbeln

Riesa

Hoyerswerda

Spremberg

Weißwasser

ForstFinsterwalde

Torgau

Senftenberg

Meißen

Leipzig

WeißenfelsNaumburg

Zeitz

Altenburg

Borna

Meerane GlauchauCrimmit-schau

Werdau

Zwickau

Schkeuditz

DelitzschEilenburg

Halle

Halsten- bek

Lübeck

Ratzeburg

Mölln

TreuchtlingenPappenheim

Weißenburg

Eichstätt

Kipfenberg

Hemau

Kelheim

Neustadt

Schierling

Schwandorf

Neuburg vorm Wald

Waldmünchen

Furth i. Wald

Cham Lam

Lohberg

Zwiesel

Flanitzhütte

PerlesreutDeggendorfBogen

Straubing PlattlingHengersberg

Passau

Waldkirchen

Obernzell

VilshofenLandauDingolfing Schwaigen

Reisbach

LandshutVilsbiburg Gangkofen Pfarrkirchen

Simbach

Unter-neukirchen

InzellBad Reichenhall

Karlstein

Waging

Kirchanschöring

Traunstein

Siegsdorf

TrostbergTacherting

Marquartstein

Unter-wössen

Neuburg

Ingolstadt

Remlingen

Wald-büttelbrunn

EMB

KlingenbergErlenbach

Elsenfeld

SulzbachKleinwallstadt

Stockstadt

Bensheim

Arrach

Herleshausen

BadBlankenburg

Ismaning

Haar

Beckum

Lübbenau

Stw. Elbtal GmbH

Freital

Dresden

Elpersheim

Morsbach

Bad Vilbel

Ludwigs- hafen

1110

9

Landau

Rülz-heim

Germersheim

DudenhofenSpeyerHaßlochNeustadt

WeidenthalBad Dürkheim

Lambsheim

2 3

Lam-brecht

5

121

3 14

15

1617

18

19

20

Heidelberg

Hockenheim

Mann- heim

Enkenbach-Alsenborn

Eisenberg

67 8

WeinheimViernheimEnBW Regional AG

Eberbach

Mosbach

BuchenWalldürn

Hardheim

ForchtenbergSüwagEnergie AG

Karlsruhe

RheinzabernWinden

Herxheim

Münchweiler

Heltersberg

Kaiserslautern

Wald-leiningen

Stelzenberg

DahnBusenberg

ErfweilerHauensteinSpirkelbach

Annweiler

BadBergzabern

SchindhardBunden-thal

Hardt Bruchsal

Bretten

MühlackerEttlingenRastatt

brückenSaar-

Wendel

SaarwellingenDillingenSaarlouis

VölklingenSt. Ingbert

SulzbachBexbach

Neun-kirchen

Blieskastel

Kirkel

Hütschenhsn.

energis GmbH

Merzig

Hom-burg

1

Los- heim

Wadern

Pirmasens

Ramstein-Miesenbach

Waldfischbach-Burgalben

Krickenbach

Muggensturm

Gaggenau Bad Herrenalb

BadWildbad

Baden-Baden

Altensteig

Baiersbronn

Freudenstadt

Sinzheim

BühlHafenverwaltung Kehl

Schutterwald

Oberkirch EW MoserOttenhöfen

Kappel-rodeck

EW Hagenbruck Seebach

Ulm-

Weißenhorn

Neu-Ulm

ÜW

Krumbach

GmbHKirchheim

Burtenbach

BadWörishofen

VWEW

Heidenheim

Hermaringen

Sontheim

Aalen

SchwäbischGmünd

Gaildorf

Schorndorf

Alerheim

CrailsheimEW TullauUttenhofen

Schwäbisch Hall

EW Ley Unterscheffach

Dinkelsbühl

Feuchtwangen

Leutershausen

RothenburgMarkelsheim

Waiblingen

OwenNürtingen

Pforzheim

Niefern-Öschelbronn

Mössingen

Wiedernau

Rottenburg

Tübingen

Neufen

Goma-ringen

EW LichtensteinUnterhausen

Reut-lingen

EW Maunz Ehingen

EW Gebr. MillerSchwendi

Öttingen

ZEAG

badenova AG & Co. KG

AlpirsbachGengenbach

Haslach

Elzach Hardt

Rottweil

Villingen-SchwenningenUnterkirnach

Kirchzarten

Gundelfingen

Bräunlingen Hüfingen

Kraftwerk Laufenburg (KWL)

KlettgauKandern

Köhlgartenwiese

Hauingen

Saig Löffingen

BlumbergSchönau

Kraftübertragungswerke

Rheinfelden AG KWLKWL

Todtnau

KWL

EW Reutte

Allgäuer Überlandw.GmbH

VKW

AÜW

VKW

KW Haag GmbH

EWTegernsee Thüga AG

E.ON Bayern AGRegensburg

REWAG

E.ON Bayern AGRegensburg

Fränkisches Überlandwerk AG

GmbH

SWM-Versorgungs

SWM-Versorg.

EW Wörth/Donau

R. Heider & Co. KG

ÜZ Wörth-Altheim AG

E.ON Bayern AGRegensburg

ÜW

ÜberlandwerkFulda AG

OberhessischeVersorgungsbetriebe AG

(OVAG)

EAM

Kreisw.

Gelnhausen GmbH

envia Energie Sachsen Brandenburg AG

TEAG Thüringer Energie AG

E.ON Bayern AGRegensburg

ÜberlandwerkRhön GmbH

Unterfränk. Überlandz. eG

Versorgungs-AG

ÜW Groß- Gerau

Süwag Energie AG

Rheinhessen AG

RWE Net AG

Eletrizitätswerk

OIE AG

Pfalzwerke AG

KEVAG

KEV Schleiden GmbH

STAWAG

ELEKTROMARK AG

GEW Köln AG

Lister- u.

Lennekraftw.

NVVKreisw.

Heinsbg.EWV-

Energ.-u.

Wasser-

KW.

GmbH

Vers.

Aggertal GmbH

Rhein. -Berg.

Stromvers.Versorgungsges.

EVL

ASEAG

Westd.

L.-u.

Stw.BielefeldGmbH

PESAG AG

Energie-AktiengesellschaftMitteldeutschland (EAM)

WestharzerKW GmbH

EW Wesertal GmbH

Kraftwerke Harz

Oberharz(Clausthal-Zellerfeld)

Landelektrizität GmbHLeinetal

ÜW.

GmbH

Avacon AG

Avacon AG

Avacon

EW Minden-Ravensberg GmbH

Avacon AG

SVO Energie GmbH

Landelektrizität GmbH

E.-Verb.

WittingenGmbH

EWE AG

EWE AG

Electricitäts-Werke AG

Hamburgische

SCHLESWAG AG

Stw. Kiel AG

Stw.Neumünster

GmbH

SCHLESWAG AG

WEMAG AG

e.dis Energie Nord AG

Avacon AG

EW Dahlenbg.AG

L.StamerGmbH

Avacon AG

e.dis Energie Nord AG

Bewag AG

e.dis Energie Nord AG

MitteldeutscheEnergieversorgung AG

envia Energie Sachsen Brandenburg AG ESAG EnergieversorgungSachsen Ost AG

Thüga AGStädt.

WerkeÜW Coburg

Sempt-EW

FMG

Energie-AktiengesellschaftMitteldeutschland (EAM)

Verbandsel.Waldeck-

Frankenberg GmbH

Flensburg

Österreichische Elektrizitätswirtschafts-AG

Tiroler Wasserkw. AG

Nordostschweizerische Kraftwerke

SH Energie A / S, (Dänemark)

energis GmbH

RWE Net AG

RWE Net AG

RWE Net AG

RWE Net AG

RWE Net AG

RWE Net AG

BadMergentheim

Schäfters-heim Röttingen

UffenheimBad Windsheim

Obernbreit

Alb-EW

Neckarwerke Stuttgart AG(NWS)

Dillingen-Lauingen

EGT

EW Mittelbaden AG (EWM)

EnBWRegional AG

EnBW Regional AGEKS

ÜW

Tauberrettersheim

Sont-

Fürth

GmbH

EnBWRegional AG

HEAG

Baiersdorf

St.

Merseburg

WolfenAschersleben

Lutherstadt Eisleben

Bernau

Perleberg

Pritzwalk

Püttlingen

Velten

Eisenhüttenstadt

Parchim

Barth

Pasewalk

Hagenow

Malchow

Grevesmühlen

Ludwigslust-Grabow

Teterow

Lichtenstein

Niesky

Oelsnitz

OlbernhauStollberg

Roßlau

Bad Bramstedt

Sömmerda

Tornesch

Detmold

Lingen

Munster

Radevormwald

Georgs-marienhütte

Erkrath

Kamp-Lintfort

Neuss

Werther

Dormagen

Walldorf

Fellbach

Waldkirch

Sindelfingen

Traunreut

Waldkraiburg

Gochsheim

Pocking(EW Bachmayer,Aumühle)

Alzenau

Maintal

Volkmarsen

FAG

21

Otterstadt21

Avacon AG

Bruchmühlb.-Miesau

Zweibrücken

GmbH

EV

VereinigteStadtw. GmbH

Reinbek-Wentorf

Ritterhude

Brandenburg

Frankfurt/Oder

Lübz

Cottbus

Hameln

envia Energie Sachsen Brandenburg AG

EnBW Regional AG

EnBWRegional AG

Jena-Pößneck GmbH

Kandel

Hatters-heim

Warstein

Cuxhaven

Herzberg

Meerbusch

VEAG

Korbach

Herzberger LuK GmbH

Herne

Budenheim

Kaulsdorf

Telgte

Ost-

Sennfeld

Siegburg

SüwagEnergie AG

Süwag Energie AG

Ruhpolding

E.ON Bayern AGRegensburg

Lauenburg

EnBW Transportnetze AG

HamburgischeElectricitäts-Werke AG

E.ON Netz GmbH

RWE Net AG

Bewag AG

VEAG Vereinigte Energiewerke AG

E.ON Netz GmbH

E.ON Netz GmbH

E.ON Netz GmbH

RWE Net AG

RWE Net AG

VEAG Vereinigte Energiewerke AG

Regelzonen

4 - 14 May 2003 - CIRED

Unbundling - Associations

• Unbundling created the need for a technical and lobbying organisation focused on network operators

• Common economic and technical TSO and DSO interests were becoming ever closer

– network access fees sufficient for investments /maintenance

– non-discriminatory treatment of all system users

– difficulties in data exchanges particularly between TSOs/DSOs

Foundation of VDN on 13 June 2001; merger of 2 (parts of) existing associations; currently over 320 members, representing 95 % of the German electricity networks

5 - 14 May 2003 - CIRED

VDN Project Groups andNetworks of Experts

SC System Economy SC System Technology TSOs‘ Co-ordination Committee

PG General network supply conditions („AVB“ - with VDEW)

PG Data exchange and energy accounting

PG Use-of-system charges for heat storage/heat pump customers

PG General recommendation on digital protection systems from user‘s view

PG Connection conditions and electrical small trade

PG Outdoor lighting

PG Construction and operation of supply substations

PG Dispersed generation connected to the HV network

PG Specifications on IEC 61850 from user‘s view

PG Maintenance management

PG Multi-utility training

PG Disturbance statistics

PG Metering

NE Connections

NE Electric and magnetic fields

NE Lines

NE System Technology

NE Substations

NE Quality of supply

PG Scheduling management

PG Horizontal balancing (EEG/KWKG)

PG Frequency control energy

PG System management

PG Transmission (contracts)PG Wind - Network development

As of March 2003

NE Protection and control

PG Single purpose equipment

PG Load profiles

PG Load profiles for interruptible consumer installations

PG Network codes

PG Use-of-system charges

PG Pricing concepts (with VDEW)

PG Emergency supply

NE Power balances

NE Statistics

NE System Economy

NE Load profiles

NE Metering/metered data management

PG Control centers in multi-utility networks

Networks Consultation Committee

Consultation Committee onMetering/metered datamanagement

Federal Electricians‘ Committee

NE Asset management

NE Outdoor lightingNE Model networks

PG Quality of supply

EN IT for system management

6 - 14 May 2003 - CIRED

GridCode(7/1998)

EnWG(4/1998) VV I

(5/1998)

VV II(12/1999)

Load profiles(2000)

GridCode2000

(6/2000)

DistributionCode

(5/1999)

Contract texts,VV-Commentary

(2000)

EEX/LPX(2000)

Control energymarket

(2/2001)

DistributionCode

(2000)

MeteringCode

(2000)

Distributionfees on

VDN-website(1/2002)

VV II +(12/2001)

The Associations Agreements (VV), laws and other rules

VV II +calc. guide(4/2002)

Structural dataon VDN-website

(9/2002)

EnWG(5/2003)

7 - 14 May 2003 - CIRED

Non-discriminatory system access: charges

• VV II + regulates all essential parts of network fees:

– Tarification methodology has been established through VV II

– The calculation guide describes a coherent cost accounting method with narrow limits for assumptions

– maintenance of real-asset values, depreciation periods, return on capital - confirmed through scientific experts

– The comparison market enables market participants and cartel authorities to carry out an advance plausibility check

– Concerning system operators whose network charges are in the upper 30%-range of the total spread of fees within a structure class, system users may refer to arbitration

8 - 14 May 2003 - CIRED

Cartel Office activities

• The Federal Cartel Office considers the fees resulting from the calculation guide too high:

– Based on structural analyses and based on mandated changes to the calculation guide it is trying to force individual DSOs to lower tariffs 10-20 %

• This is perhaps the biggest current challenge for DSOs:

– With the fees allowed these companies, investments in networks yield less than gov’t bonds, at higher risk

– The DSOs have sued against these Cartel Office rulings

– The uncertainty may lead to further reductions in the expenses for network maintenance and investment

9 - 14 May 2003 - CIRED

3 classes low/med./high, e.g.:2500 ..3500 I/ km²

3 classeslow/med./high50% ... 75%

2 classes

East / West

low voltage

medium voltage

high voltage

1) related to total surface

Structural feature 31 2

East / West

population density 2)

[I/km²]

consumption density1)

[MWh/km²] Cable rate[%]

Pre-sorting is not required at the EHV level due to the low number of system operators

18 variants

per voltage level

= X X

2) related to populated area

Structural features VV II +

10 - 14 May 2003 - CIRED

Characteristic consumption cases

Voltage level:

low

medium

high

Without vs. with capacity metering

11 - 14 May 2003 - CIRED

# of system operators over categories

• Since 09/2002 on www.vdn-berlin.de

• 480 (now 580) data sets on network fees + structural features; covering 80 (90) %of the network

Number DSOs per class (voltage lvl, cable rate, density)

12 - 14 May 2003 - CIRED

Example table of network fees

13 - 14 May 2003 - CIRED

Definition of the populated area

• 1st VDN survey 02/2002 had problems with data quality, consistency with state/municipal data, and especially rural sprawl (e.g. farms in 400 m distances)

• Outer Polygones around populated areas less than 120 x 90m were not counted

• New data set based on satellite pictures with grid 20 x 30m

• All populated areas incl. individual dwellings

• Germany-wide consistent data from 1998-2000

• Additional statistics on sprawl

• VDN-research continues (e.g. roads/squares, front-yards)

14 - 14 May 2003 - CIRED

Use-of-system charges - consumption density (med. voltage)

• Clearly a function of East/West (investment cycles)

• Also a function of density

• Update 04/2003 with new calculation guides shows lower avg. fees and much lower bandwidth

15 - 14 May 2003 - CIRED

Use-of-system charges - consumption density (high voltage)

• These depend-encies show over all voltage levels

16 - 14 May 2003 - CIRED

Cable rate - consumption densitymed. voltage

Consumption density (city) <=>

cable rate (city):

Cost effects of the two structural features super-impose and influence each other:

The price-cutting effect of a higher consumption density may be partly offset through higher specific network investment costs.

17 - 14 May 2003 - CIRED

Cable rate - consumption densityhigh voltage

18 - 14 May 2003 - CIRED

Best practice recommendations of BMWA(Federal Ministry of Economics and Labour)

• The BMWA Task Force on System Access - without a legal mandate - elaborates in conjunction with over 10 associations best practice recommendations:

– data formats for electronic implementation of fast customer switching (EDIFACT, XML, csv, converters)

– deadlines and processes (1 month from registration of the new supplier to execution of the change)

– handling of household customer moves

– kWh/year limit of load profiles (100.000 kWh)• Only some 100 complaints at a BMWA hotline

• NTPA is working well in Germany also with regard to data exchange, which delayed the introduction of liberalisation for many years in the domestic customer sector in other countries.

19 - 14 May 2003 - CIRED

E.g.: 2nd Best practice recommendation:Deadlines and processes• End of month: New supplier has notified DSO and old supplier with the electronic data of the customer• After 5 work days: Old supplier confirms to DSO• After 10 more work days: DSO confirms to both suppliers• Until end of month: Suppliers adjust their energy procurement• Identification of customer even with defined combinations of incomplete data, not necessarily including

metering point• But: Not nearly all DSOs apply

electronic data exchange yet:

• Implementation of ever new ITrequirements remains a challengefor DSOs of all sizes

No

Yes

Noanswer

20 - 14 May 2003 - CIRED

Source: VDEW

Generation, transport, sales vs. Taxes and government-mandated price components

2002200119991998 2000

49,95 Euro 48,20 Euro

40,61 Euro 41,72 Euro44,60 Euro

– 30 %

+ 47 %

– 10 %

Erzeugung,Transport und Vertrieb (Erneuerbare-Energien-Gesetz, Kraft-Wärme-Kopplungsgesetz,

Stromsteuer, Konzessionsabgabe, MWSt)

Steuern, Abgaben, Umlagen

37,60

12,35

33,80

14,40

25,15

15,46

25,05

16,67

26,40

18,20

Average monthly electricity bill of a 3-person-household (3 500 kWh/a)

21 - 14 May 2003 - CIRED

Quality of supply: service interruptions

Average duration of power supply interruptions per customer in 1999 (in minutes) Country

Germany 15Netherlands 25France 57* * without 1999 storm damages Great Britain 63Sweden 152 Source: Council of EuropeanNorway 180 Energy Regulators, VDEW Italy 191

VDN is currently preparing an extension of interruptions statistics to a larger number of participating system operators and to all voltage levels.

22 - 14 May 2003 - CIRED

Is the German market working well?

• Yes, because market rules (Associations’ Agreements, Grid-/Distribution-Code, MeteringCode, data exchange standards,...) were established within a short time and are always rapidly adjusted to needs

• Yes, because 1.4 million domestic, 180 000 commercial and many industrial customers have changed their supplier

• Many more customers are paying lower prices

• There are hundreds of competitors

• Generating capacity surpluses were rapidly reduced; sufficient capacity is so far still available throughout Europe

• System reliability remains high

23 - 14 May 2003 - CIRED

• Although the electricity Associations‘ Agreements are working well, the AA negotiations failed for gas

• Partly due to the new EU Directive,the gov’t will introduce regulationfor July 2004 (ex-post approval of methods for calculating network fees)

• The electricity AA will be re-negotiated starting in June 2003

• It should be the best basis - negotiated by experts on the network user and the system operator side - for any future regulation

Outlook