How PSE’s activities translate into the transmission tariff and electricity bills
Electricity transmission from power plants to consumers is possible over an extensive transmission infrastructure. Responsibility for infrastructure on the part of PSE involves the need to carry out maintenance, inspection and repair work, and perform necessary, economically justified upgrades and expansions. This is aimed to address changes arising e.g. from an increase in demand and the energy consumption structure in the country, as well as the change of the structure and location of generating sources.
Maintaining the required quality parameters of electricity supplied and ensuring PPS operation security is associated with the need to purchase ancillary services provided by electricity generators.
Financing of expenses related to the transmission business, i.e. operating costs and capital expenditure, is based on the rules set forth in the applicable legal provisions, and expenses are covered by income from transmission services based on the application of the company’s tariff approved by the President of ERO .
The tariff is a set of prices and at charge rates, and conditions for their use developed each year on the basis of planned, reasonable costs of business, and return on capital employed in transmission activities, intended for the financing of investment projects. The costs providing a basis for the calculation of charge rates for transmission services are subject to assessment by the President of ERO who approves the Tariff in an administrative procedure.
In 2018, the PSE tariff included:
- tariff charge rates calculated by the TSO on the basis of the cost of transmission activities and return on capital,
- tariff charge rates set by the President of ERO not related directly to PSE’s activities – RES charge connected with ensuring the availability in the PPS of electricity from renewable sources. In 2018, the RES charge rate was 0 PLN/MWh,
- tariff charge rates resulting from the Act on termination of long-term contracts (LTCs) not related directly to PSE’s activities – transitional charge related to the PPS access service.
All revenue collected by PSE in respect of the RES charge and the transitional charge is transferred to the Settlement Body, a company responsible for its redistribution to generators.
In connection with the entry into force on 25 January 2019 of the Act of 14 December 2018 on the promotion of electricity from high-efficiency cogeneration (Journal of Laws of 2019, item 42), as of that date the PSE Tariff includes the cogeneration charge rate related to ensuring the availability of electricity from high-efficiency cogeneration in the PPS in the amount of PLN 1.58/MWh. As in the case of the transitional charge and the RES charge, all revenue derived by PSE through the settlement of the cogeneration charge is transferred Zarządca Rozliczeń SA, a company responsible for its redistribution to generators.