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German Offshore liability surcharge 2016 levelling off

By: Chris Anderson 15/11/2015 pressoffice@bnetza.de

General Grid

Offshore liability surcharge for 2016 has stabilised

Jochen Homann: "Positive development: Compensation payments for the delayed connection of offshore wind farms have fallen sharply"

The offshore liability surcharge for 2016 for household customers lies between 0.039 ct/kWh and 0.04 ct/kWh.

"The stabilisation of the offshore liability surcharge is a positive sign. The expansion of offshore wind energy is making progress and the risks caused by the delayed connection of offshore wind farms have decreased," said Jochen Homann, Bundesnetzagentur President.

The offshore liability surcharge has been a component of the price of electricity for final consumers since 2013. The surcharge was introduced to cover compensation payments that may result from the delayed connection of offshore wind farms to the transmission network on land or through prolonged interruptions in the network. The surcharge is calculated by the transmission system operators. The Bundesnetzagentur makes sure that the surcharge is determined properly. In the past, final consumers had to pay around €1.6bn for the offshore liability surcharge.

The surcharge for 2016 will be based on a comparison of the costs incurred and the revenue generated by the surcharge in 2014 on the one hand, and the predicted costs resulting from compensation payments to offshore wind farm operators for 2016 on the other. In recent times, these compensation payments have fallen sharply. Almost all relevant transmission links have been finished by now.

While compensation payments were mainly a result of delayed connections in the past, this should not be as major an issue in the future. The surcharge for 2016 will largely be based upon the estimated costs for compensation for power line disruptions.

Compared to last year, the surcharge decreases slightly to a value between 0.026 ct/kWh and 0.027 ct/kWh for final consumers that purchase more than 1,000,000 kWh annually. For final consumers in the manufacturing sector with electricity costs that exceed 4% of their turnover, the surcharge lies between 0.025 ct/kWh and 0.03 ct/kWh.

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German Offshore liability surcharge 2016 levelling off

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