NORWAY Law and Practice Contributed by: Jøran Sandvik, Aksel Tannum and Ida Mattsson Sperre, Advokatfirmaet Haavind AS
4.6 Transmission Charges and Terms of Service Considering the inherent nature of the trans- mission grid as a natural monopoly, the trans- mission charges and terms of service are thor- oughly regulated. The NVE-RME sets an annual revenue cap for Statnett, which includes both costs related to grid operation and the system responsibility. The cap is determined so that the income generated over time covers the opera- tional and depreciation costs of the installations, while also allowing for a reasonable return on investments assuming efficient operation, utili- sation and development of the grid system. Fur- ther, Statnett is obligated to provide all services under non-discriminatory conditions, and in an objective manner, ensuring equal treatment for all parties involved. Since the ability to own and operate the trans- mission grid is exclusively held by Statnett as the TSO, all grid services must be offered under non-discriminatory conditions and an objective basis. Consequently, Statnett is legally obliged to provide transmission services to all parties requesting transmission services within the legal framework for such services. This obligation includes, but is not limited to, an obligation to invest in the transmission facilities necessary to accommodate the requests. 4.7 Open-Access and Non- Discriminatory Transmission
govern the construction and operation of electric distribution facilities are the Energy Act and the regulations derived from it, namely the Energy Act Regulation. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities To construct and operate electric distribution facilities, the grid company must possess one of the two types of grid licence, and the licence must cover the relevant installations. One type of licence is the area concession. Holding such a licence eliminates the need for individual approvals for each installation within the designated area. Area concessions are only applicable for installations carrying 22 kV or lower. The other licence type is the licence to construct and operate specified electricity distribution facilities that are not covered by an area con- cession. The regulatory application process for obtaining these licences is similar to the process for the transmission grid, as described in 4.2 Obtaining Approvals to Construct and Operate Transmis- sion Lines and Associated Facilities : the pub- lic is invited to participate and provide input at several stages of the process, and the applicant is obligated to conduct a comprehensive EIA. Applications are submitted to the NVE. If the installations hold less than 300 kV or are shorter than 20 km, the NVE may process the applica- tion. However, for installations exceeding these limits, the NVE provides a recommendation to the Ministry of Energy. The Ministry of Energy processes the application before the King in Council makes the decision.
5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities
As set out in 4.1 Constructing and Operating Transmission Lines and Associated Facilities , the Norwegian electricity grid system is struc- tured into three levels. The principal laws that
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