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Netzentgelte

Netzentgelte are network usage charges paid for the use of electricity transmission and distribution grids and, in the gas sector, for the use of gas transmission and distribution networks. They are intended to cover the costs incurred by grid operators for operating, maintaining, and expanding the grids, as well as for grid losses and system services necessary to ensure reliability and security of supply.

In many markets, including Germany, netzentgelte are charged by the grid operators and are passed on to

Tariffs are usually composed of several components. For electricity, common elements include energy-related charges (based on

Factors influencing netzentgelte include the level of grid investment needed, regional network conditions, the specific tariff

Netzentgelte are a major component of the total energy price in many markets and can significantly affect

energy
suppliers,
who
then
incorporate
them
into
the
prices
billed
to
end
customers.
The
charges
reflect
the
network’s
costs
rather
than
the
price
of
the
energy
commodity
itself.
They
are
typically
regulated
and
approved
by
the
national
or
regional
regulatory
authority.
consumption),
capacity-related
charges
(based
on
the
capacity
used),
fixed
access
charges,
and
charges
for
grid
losses,
metering,
and
system
services.
For
natural
gas,
similar
components
apply,
covering
the
use
of
transmission
and
distribution
networks
and
related
services.
The
exact
structure
and
amounts
vary
by
network
operator
and
region.
class
(household,
small
business,
industry),
and
time-related
aspects
in
some
schemes.
Tariffs
are
typically
adjusted
annually
and
published
by
the
respective
network
operators
after
regulatory
approval.
household
and
industrial
energy
costs,
investment
decisions,
and
the
broader
economics
of
energy
supply
and
the
integration
of
renewable
energy
sources.