November 4, 2019 / 3:32 PM / 2 months ago

Norway raises 2020 revenue ceiling for power grid owners by 8.5%

OSLO, Nov 4 (Reuters) - Norwegian power grid owners, excluding state-owned Statnett, will be allowed to earn revenues of up to 19.1 billion Norwegian crowns ($2.10 billion) in 2020, an increase of 8.5% year-on-year, power regulator NVE said on Monday.

The ceiling NVE proposed for 2019 late last year was 17.6 billion crowns.

It would be the second annual increase in a row. 2018’s ceiling was 16.9 billion crowns.

The maximum allowed revenue is calculated by using variables that include power prices, and can be subject to change in case of variations in the reference price used by NVE, which was set at 376.93 crowns per megawatt hour.

For individual grid companies, NVE also suggested a limit of a 5.47% return on grid investments, down from the proposed 5.82% a year ago.

“The allowed revenues are based on the costs, and costs have increased, particularly in operations and maintenance. Also the costs of energy interruptions,” an NVE spokesman said about the revenue ceiling hike.

The lower allowed return on grid investments reflects developments in financial markets and interest rates, he added.

Revenue and return limits for Statnett will be announced later this year, the spokesman said.

$1 = 9.1107 Norwegian crowns Reporting by Lefteris Karagiannopoulos; Editing by Mark Potter

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