ENTSO-E’s Overview of Transmission Tariffs in Europe analyses the design, structure and level of transmission tariffs in more than 30 countries. The report provides detailed descriptions of the different components that make up transmission tariffs and seeks to provide interested parties with an accessible and comparable overview of the alternative approaches used across Europe.
Transmission tariffs are one of the key elements of the Internal Electricity Market. There is no single “correct solution” for recovering costs related to electric energy transmission, and different methods work side-by-side. However, in order to make tariffs more comparable across the ENTSO-E countries participating in this report, a “Unit Transmission Tariff” (UTT) for each participating country is calculated for a pre-defined “base case”. Thus, this overview does not compare individual transmission tariffs directly and any extrapolation should be careful to recognize national specificities.
The calculation of the UTT covers charges invoiced to base case grid users (generation and load) for the purpose of covering both TSO costs (infrastructure, system services and losses) and, where applicable, non-TSO costs (renewable energy support, regulatory levies, stranded costs, etc). Average European UTT decreased from 2018 to 2019 by 5.85 %. On average, in 2019, the TSO cost component of the UTT is divided as follows: 57.2 % for infrastructure, 31.6 % for system services and 11.2 % for losses.
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