GERMANY Law and Practice Contributed by: Udo Olgemoeller, Nicolaus Ascherfeld, Johann von Pachelbel and Janina Müller, A&O Shearman
4.6 Transmission Charges and Terms of Service Transmission charges are regulated under a revenue cap regime governed by the Incentive Regulation Ordinance ( Anreizregulierungsverordnung – ARegV) and the Electricity Network Charges Ordinance ( Stromnetzentgeltverordnung – StromNEV), under which the regulator determines allowable revenues based on efficient costs, quality incentives and pro- ductivity factors, and TSOs set published tariffs con- sistent with approved revenue caps. Terms of service, including connection conditions and access rules, are established under the EnWG and detailed in network codes and TSO terms approved or supervised by the regulator, ensuring transparency, non‑discrimination and cost‑reflectivity. Balancing services and ancillary services are pro- cured through competitive tenders and standardised products under TSO market rules overseen by the BNetzA, and charges and conditions are periodically adjusted to reflect changes in costs, investment and policy requirements. Regulatory decisions on charges and terms are subject to legal challenge before the competent courts, providing due process and legal certainty (see also 1.7 Announcements Regarding New Policies ). 4.7 Open-Access and Non-Discriminatory Transmission Open and non‑discriminatory third‑party access to transmission and distribution networks is a core requirement of the EnWG implementing EU electric- ity directives, obliging grid operators to grant access to all eligible users on published, objective terms and to connect generation and load in accordance with technical standards and capacity availability. Open access is regulated directly by statute and by reg- ulator‑approved tariffs and codes, with the BNetzA empowered to adjudicate disputes over connection and access, to set or adjust terms, and to enforce compliance. Users acquire contractual rights under the access and connection agreements, which are enforceable under civil law and supported by regula- tory dispute resolution mechanisms. Priority access and dispatch of renewable energy are provided under the EEG.
Conditions also address technical standards and measures for electromagnetic field exposure compli- ance, as well as co-ordination with other infrastructure and emergency services; for cross‑border projects, co‑ordination with neighbouring regulators and sys- tem operators is formalised. Amendments are pur- sued via modification procedures before the same authority, with the level of assessment and participa- tion calibrated to the significance of the change; minor variations may be approved through supplemental decisions without reopening the full process. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities TSOs may expropriate land under the EnWG, with compensation determined by market value and statu- tory guidelines; see also 3.4 Eminent Domain, Con- demnation and Expropriation Rights to Construct and Operate Generation Facilities . Network operators typically seek voluntary easements and compensation agreements first, using standard- ised compensation schemes for land use, crop losses and restrictions, and resort to expropriation only as a last step when negotiations fail. The plan approval decision facilitates and justifies the compulsory acqui- sition. Compensation is determined based on market value principles and specific statutory guidelines, covering permanent and temporary occupation, restrictions on use and ancillary losses. Disputes over quantum are resolved in specialised administrative proceedings with judicial recourse. 4.5 Monopoly Rights to Provide Transmission Services TSOs benefit from regulated natural monopoly within each TSO’s control area, defined historically and by regulatory certification, and competitors are not free to build parallel transmission networks to offer transmis- sion services; instead, expansion and reinforcement are planned and executed by the incumbent TSOs under federal oversight.
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