Connection fees
Connection fee covers all the actual justified expenses related to connection. When calculating the connection fee, Elering adheres to the document "Elering AS methodology for calculating the connection fee and the fee for amending the consumption and generation conditions" (hereinafter referred to as the Methodology) approved by the Competition Authority.
The connection fee does not include investments included in the connection offer for the establishment of network reinforcements, which are necessary to ensure the transmission capacity requested by the client, provided that these investments are included in the approved investment plan published on Elering’s website and for the establishment of which Elering has entered into or will enter into a procurement contract for construction within five years from the issuance of the connection offer. The transmission capacity of the grid connection requested by the client will be guaranteed to the client once the investment has been made.
According to the Methodology, the connection fee consists of the following components:
- cost of construction and related works – the cost of building electrical installations to be designed and built to ensure connection capacity;
- project management fee - costs of carrying out the construction and/or renovation of network elements necessary for the fulfillment of the connection agreement;
- processing fee - the cost of issuing and organising the signing of the connection offer to be drawn up on the basis of the connection application;
- transaction fee - the cost of organising operations in accordance with the connection contract entered into.
The amounts of processing and transaction fees are established in the connection terms and conditions.
|
Type of fee |
Processing fee, € |
Transaction fee, € |
Total, € |
|---|---|---|---|
|
Connection of a consumer or a distribution system operator at a new connection point or the amendment of consumption and/or generation conditions at an existing connection point |
3200 + VAT | 4200 + VAT | 7400 + VAT |
| Connection of a generating unit or a mixed installation to the transmission system or amendment or generation and/or consumption conditions thereof | 4000 + VAT | 12 200 + VAT | 16 800 + VAT |
The project management fee is 2.53% of the cost of construction works (including related works). The project management fee does not apply to procedural and operational fees.
The processing and transaction fees consist of the labour costs of Elering's employees in charge of connections and the actual direct costs for testing the client's production device.
The processing fee is paid within fourteen days from the submission of a connection application by a client based on the invoice issued by the transmission system operator. The transaction fee is paid together with instalments of the connection fee in the same proportion as the instalments to the total connection fee.
The first instalment under the connection contract must be paid by the client within 60 days after the signing of the connection contract. The first instalment is 20% of the estimated cost of construction and related work specified in the contract and 20% of the transaction fee prescribed by the connection contract.
The second instalment is 50% of the estimated cost of construction and related work specified in the connection contract and 50% of the transaction fee prescribed by the connection contract. The second instalment must be paid within 20 days after the announcement of the winner of the procurement for the construction of the connection point and before the entry into a contract for services with the winner of the procurement. Elering submits an invoice to the client no later than five working days after the successful tenderer is determined.
The third instalment must be paid after the connection point is completed, and it constitutes the remaining part of the actual costs of construction and related works, less the amounts already paid (first and second instalments). The third instalment also includes 30% of the transaction fee prescribed by the connection contract.