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When you use the requested load effectively, you have the opportunity to recover all the funds invested in the implementation of the connection over a five year period.
You can recover the funds, if your connection meets one of these criteria:
• the connection or power increase is 0.4kV (kilovolts) in an electrical network with a load greater than 100A;
• the connection is in a medium-voltage electrical network.
Conditions for the recovery of funds: as soon as your consumption exceeds 15% of the maximum possible 12-month-period consumption, you will receive a 50% discount on the distribution system operator’s (available in Latvian) service. The discount will be in force from the next payment month until the end of the 12 month period. Such a system of discounts will be available no longer than five years and depending on the efficiency of use of the electrical network will allow you to recover connection implementation funds in full or in part.
Use the calculator for recovery of funds to learn over what period you will be able to recover your connection implementation costs.
On 12 March 2014, the Public Utilities Commission approved the Regulations Regarding Conditions for Efficient Use of Permitted Load (available in Latvian). The Regulations apply to new system connections or applications for increase of the permitted load of existing system connections (hereinafter – connection) if the connection is in a 6–20 kV electrical network or 0.4 kV electrical network with the total load exceeding 100A. In such a connection, the user, in the case of consuming more than 15% of the maximum permitted electricity consumption in a year, has an opportunity to recover the funds invested in the construction of the connection. In accordance with Paragraph 3 of the Regulations, Sadales tīkls AS has prepared the procedure of application of the Regulations, which is presented here. By Decision No. 200 of the Public Utilities Commission of 16 July 2014, the Procedure Regarding Conditions for Efficient Use of Permitted Load was re-approved by supplementing it with Paragraph 7.6. The connections regarding which the application of the conditions for efficient use of the permitted load began before the entry into force of this Decision are subject to the procedure that was applicable to them at the time of entry into force of this Decision. The re-approved procedure applies to connections that were constructed after 16 July 2014.
1. The Procedure Regarding Conditions for Efficient Use of Permitted Load (hereinafter – the Procedure) establishes the criteria by which Sadales tīkls AS determines a connection with efficiently used permitted load and the terms applied by the system operator to the user that fulfils the criteria for efficient use of the permitted load.
2. The criterion of a connection with efficient use of the permitted load is the amount of electricity received by the user in 12 months from the commencement of metering by using a new system connection or the existing system connection after an increase of the permitted load (hereinafter – the annual electricity consumption), determined in accordance with a formula.
|For a connection with voltage not exceeding 0.4 kV and total load exceeding 100A||A = 0.15 x 8760 x 0.4 x √3 x 0.929 x I_IAA = 845.73 x I_IAA, where: A = annual electricity consumption [kWh] 0,15 – capacity factor, 8760 – hours per year [h], 0,4 – rated load [kV], 0,929 – power factor, I_IAA – the connection’s total permitted input circuit breaker load, A|
|For a connection with voltage of 6–20 kV||A = 0.15 x 8760 x I_kW = 1314 x I_kW, where A = annual electricity consumption [kWh], 0,15 – capacity factor, 8760 – hours per year [h], I_kW – the total permitted load of the user’s object [kW]|
3. The system operator commences the metering of electricity consumption on the first day of the next month after the user has concluded the system services agreement or, in the case of increasing of the permitted load, has agreed on amendments to the existing system services agreement.
4. If the amount of electricity received in a connection has reached the annual electricity consumption established in accordance with Paragraph 2 of the Procedure, the system operator in the invoice issued to the user for the distribution system services received in the settlement period (month) (hereinafter – the invoice) applies a factor of 0.5 to the variable component (the fee for electricity distribution) and the fixed component (the fee for the connection's permitted input circuit breaker load and the fee for the permitted load) of the differentiated tariff of the distribution system services (hereinafter – the tariff). A factor of 0.5 is applied to the fixed component of the tariff for the settlement period after the annual electricity consumption is reached, and a factor of 0.5 is also applied to the variable component of the tariff for the amount of electricity exceeding the annual electricity consumption.
5. The system operator begins applying the factor established in Paragraph 4 of the Procedure in invoices for the next full settlement period (month) until 12 months have elapsed since the metering commencement date specified in Paragraph 3 of the Procedure or any of the conditions specified in Paragraph 7 of the Procedure come into effect.
6. In each subsequent period of 12 months, the system operator will apply the factor established in Paragraph 4 of the Procedure in accordance with the provisions of Paragraphs 4–5 of the Procedure.
7. The system operator will not commence or will discontinue the application of the factor established in Paragraph 4 of the Regulation if any of the following conditions come into effect:
7.1. the user has not made the payment for connection in full;
7.2. the user has not concluded a system services agreement or, in the case of increase of the permitted load, has not agreed on amendments to the existing system services agreement within 3 months after the day of formal acceptance of the respective connection;
7.3. the user has not paid the system operator’s invoice for the received distribution system services. The system operator will resume the application of the factor established in Paragraph 4 of the Procedure when the payment for the system services has been made in full;
7.4. the difference between the total value of the issued invoices if the conditions for efficient use of the permitted load were not applied and the total value of the issued invoices by applying the conditions for efficient use of the permitted load (EUR) has reached the amount of the payment for connection;
7.5. five years have elapsed since the conclusion of the system services agreement;
7.6. the user constructed the connection to ensure electricity generation or the system operator has found that the user’s connection is used for the electricity generation facility’s own consumption.
8. The achievable annual energy consumption of the connection and the payment for connection determined for the user are specified in the connection agreement.
9. The annual electricity consumption of the connection, the payment for connection determined for the user, the time of commencement of metering of the annual electricity consumption and the expiration of application of the conditions for efficient use of the permitted load are established in the system services agreement.
10. If ownership or possession of the object in which the conditions for efficient use of the permitted load are applied to a connection is acquired by a different user, the system operator in the system services agreement with the new user will include the conditions specified in Paragraph 9 of the Procedure that were established in the system services agreement with the previous user, taking into consideration Paragraph 7.4 of the Procedure, but the time referred to in Paragraph 7.5 of the Procedure will continue to be counted from the day of coming into effect of the first system services agreement.
11. The Procedure is applied to connections whose installation agreements have been concluded after 1st January, 2012.