ERGEG consultation on electricity network losses

ERGEG consultation (42 pages, PDF) on the treatment of electricity distribution and transmission losses. The paper discusses some general issues about the definition and allocation of losses (or their costs), and reports practices and statistics from various countries.

ERGEG is an EU comitology committee of the electricity and gas regulatory authorities in the EU countries (with some participation from EEA countries). The scope of the paper and ERGEG's reasons for consulting on network losses are explained as follows in the document:

ERGEG’s analysis of network losses gives an overview of national practices regarding the definition, procurement and financial recovery of network losses as well as on incentives for their reduction. Furthermore, it shows the best practices on network losses in Europe, by means of representative case studies from some Member States.

The analysis can serve as background for further discussions and the development of Guidelines of Good Practice on losses. The scope of the future Guidelines on Energy Efficiency in Electricity will be defined depending on the outcome of the ongoing ERGEG work on network losses mentioned above, on the implementation of the Directive on Energy End-Use Efficiency and Energy Services and other related issues, notably the “Green Package”.

The brief case studies in the document are from Austria, the Czech Republic, Finland, France, Norway, Portugal and Sweden. Of those, only Portugal requires suppliers to purchase their own losses; the other cases involve centralised procurement by network operators of electricity to cover losses.

Responses by Tuesday 30 September 2008.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, ERGEG.

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