NORWAY Law and Practice Contributed by: Jøran Sandvik, Aksel Tannum and Ida Mattsson Sperre, Advokatfirmaet Haavind AS
5.6 Electricity Distribution System Charges and Terms of Service Charges and terms of service for the electric- ity distribution system are regulated and estab- lished by the same provisions as for the trans- mission system (see 4.6 Transmission Charges and Terms of Service ). Each distribution entity is assigned an annual revenue cap, which is determined individually by the NVE-RME. The revenue cap decision may be appealed to the Energy Complaints Board. The distribution entities set the charges that con- sumers must pay for grid system connection. While these charges may vary among entities due to geographical, technical and operational differences, they must be objective and offered under non-discriminatory conditions. The NVE-RME supervises and enforces compli- ance with the regulations. It has the authority to issue orders for compliance and to impose sanc- tions – ie, in cases of discriminatory service con- ditions. Decisions made by the RME-NVE may be appealed to the Energy Complaints Board. General terms and conditions set out in legisla- tion are not subject to appeal and can only be amended through the regular legislative process.
The timeline for obtaining the necessary licences varies depending on factors such as the magni- tude of the installations, the impacted areas and interests, and the thoroughness of the applica- tion and the EIA. Consequently, the timeline can range from a few months to several years. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities The typical terms and conditions imposed on approvals to construct and operate electric distribution facilities are equivalent to those imposed for transmission grid licences (see 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities ). 5.4 Eminent Domain, Condemnation or Expropriation Rights to Construct and Operate Electricity Distribution Facilities Eminent domain, condemnation or expropriation rights are necessary for a proponent to under- take the construction and operation of electricity distribution facilities. The process and method- ology for compensating affected property own- ers and rights-holders are equivalent to those described in 3.4 Eminent Domain, Condemna- tion and Expropriation Rights to Construct and Operate Generation Facilities . 5.5 Monopoly Rights for Electricity Distribution Entities Electricity distribution entities possess, through necessary licences, exclusive rights to pro- vide distribution services within specified geo- graphical areas. Here, the reasoning is that the electricity distribution grid constitutes a natural monopoly, as construction and operation of mul- tiple power lines and facilities within the same area, along with competition among the relevant distribution entities, would be inefficient.
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