The Fee for conection to the distribution network – cost aproach

Abstract

The connection of customers' power facilities to the distribution network in the Republic of Srpska has been subject of regulation for almost fifteen years. The Methodology for determining connection fee to the distribution network is the basis for carrying out the tariff procedure in which the amounts of fees for connection to standard and non-standard connections in the Republic of Srpska are approved. During the period from 2009.-2013. an experience base was created for assessing the adequacy of established technical and material facts in the first tariff procedure.  This paper provides a brief overview of possible approaches in defining the methodology for determining connection costs, their advantages and disadvantages. The approved fees in all three tariff procedures were analyzed using a comparative method and the causes of certain observed deviations were identified. Based on the above, a clear evaluation of the success of the methodology used in this way was given.