DISTRIBUTION NETWORK OPERATOR CONNECTION CHARGING METHODOLOGY

Transcription

1 DISTRIBUTION NETWORK OPERATOR CONNECTION CHARGING METHODOLOGY Prishtina 2017

2 Contents 1. Purpose Scope Definitions and Terms Introduction and Background Legal and Regulatory Requirements Law on Energy No. 05/L Law on Electricity No. 05/L Law on the Energy Regulator Nr. 05/L Rule on General Conditions of Energy Supply Rule on Distribution Network Operator Pricing Connection and system usage Principles of Setting Distribution Charges Technical Requirements for Connections Process of Connection of End-customers Summary of the process Connection Request Review and Proposed Solutions Energy Permission Technical Acceptance Connection Agreement Connection to the network Energizing Termination of connection from the distribution network Disconnection of customers connection Access and intervention rights The Mode of Communication Customer right to compain The Basis of the Charges for Connection TO DISTRIBUTION network for End-customers Connection Principles Fixed Fee Standard Connection Fee (Mix Method): Special Connection Fee (Deep Method): Other Fees Special Cases Temporary Connections Sole User Assets Request for connection for a same Point of connection

3 4.2.4 The right of servitor required by the DSO National Grid and Transmission System Charges Process Of Connections For Generations Summary of the Process Request for Connection Review and Proposed Solutions Draft Energy Permission Final Energy Permission Technical Acceptance Connection and Use of System Agreement Energizing and Synchronization Connection Fee Annex 1 - Technical Requirements For Connections Connection Standards Protection Requirements Earthing Requirements Voltage Neutral Treatment Voltage Regulation and Control Short-Circuit Levels Insulation Levels - as Sublevel for Protection Power Factor and Phase Balance Active Power Demand Capacitive and Inductive Effects Voltage Disturbances Voltage drop Conductor coefficients Some practical examples Capacity of Cable Communication Additional Performance Requirements of Generators for Network Stability Annex 2 - Request forms and Connection Agreement Request for connection form Request for connection form for generators Connection Agreement between DSO and a Customer Connection Agreement between DSO a Generation Facility Usage System Agreement between DSO a Generation Facility

4 1. PURPOSE The purpose of this methodology is to provide comprehensive procedures for applicants and customers of the distribution network, who require new connections or modification of existing connections, and provide sufficient information about connection fees that will be implemented in the distribution network. This document also defines the methodology according to which provisions for new connections, or increases in existing connections shall be paid to the distribution. 1.1 Scope This methodology describes and covers the followings: Legal and regulatory requirement General provisions, requests and procedures for connection in the distribution network; Description of the process for requesting a connection Principles for setting charges for connection to the distribution network; Estimated taxes, Necessary requested forms for connection, and Other relevant information 1.2 Definitions and Terms Definitions Applicant Connection Agreement Connection Fee Connection Offer Connection Point Contractor Deep Connection Is the natural or legal person, who applies for a new connection to the distribution network, or for modification of the existing connection, for the purpose of receiving electricity supply or for connecting a generator(s) An agreement that defines the terms upon which the Applicant will be and remains connected to the distribution network The charge that DSO will determine to enable a connection to the distribution network, as defined in 2.7 of this methodology Is an offer for connection to the Distribution network, issued to the Applicant, which sets the terms and conditions under which the DSO will make the connection to the distribution network Connection point is the physical point at which a customer s electrical facility or equipment are connected to the distribution system. The legal entity, registered by appropriate Authorities of Kosovo, as competent to perform the electrical work Applicant should cover all costs associated with connection, direct and reinforced infrastructure, including cost for installation of new or additional assets needed, to accommodate the additional load on the distribution network. 4

5 Distribution network/network Draft Proposal Connection Project DSO DSO Connection Approval Energy Permission (Permit) Fixed Connection Fee Force Majeure Isolated customer Joint Connection Request Master Plan Metering Point Producer(s) Proposed Energy Solution Regulator/ERO Request Form for Connection The system consisting (wholly or mainly) of Electric Lines owned or operated by the DSO, and used for the distribution of electricity, as the Energy Law (EL) determines. Is a document outlining in a simple format the feeders and/or trafo to which a connection is sought for, and the premises to be connected, outlining approximate distances, and also technical requirements, submitted as part of the electrical project Distribution network Operator, as licensed by Energy Regulatory Office (ERO) Standard document verifying that a customer can be connected to the system, and fulfills all the requirement of the respective energy permission Official document issued by DSO, outlining the tehnical conditions for connection, together with the rights and obligations of the parties Fee covering the costs based on the Shallow Connection. All the connection works are completed by the DSO. An act or natural or social event, such as earthquakes, lightning, cyclones, floods, volcanic eruptions, fires or wars, armed conflicts, rebellion, terrorist or military acts, which prevent the licensee to comply with its obligations under the license, as well as other acts or events that are beyond the reasonable control and that did not happen as a fault of the licensee and the licensee has been unable to avoid such act or event through the exercise of will, effort, skill and his reasonable care; Customer who is connected to the distribution network, with electrical lines used exclusively for Applicant s electricity consumption/overtaking Individual Connection Requests received by the DSO for connection to a same point, which could individually make use of the same part of the distribution network, and treated as one common connection request, due to the insufficient spare capacity or other network constraints Network Development Plan developed by DSO and approved by ERO Metering point is the point where the metering equipment is placed, for each connection point, and is decided by the DSO A(or several) natural or legal person(s) generating electricity Is a written document prepared by DSO to the customers, outlining possible connection point, as well as technical requirement for that connection Independent agency in energy sector, established by the Law on Energy Regulatory. Is a form of application submitted by Applicant for new connection or modification of an existing connection to the distribution network 5

6 Shallow Connection Technical Acceptance Temporary Connection Unauthorized Energy Customer A connection where applicant should cover only direct costs associated with connection. Costs related to direct and reinforced infrastructure will be covered by the DSO Written report containing fulfillment of the applicant's obligations and recommendations for corrections, or amendments to comply with the energy permission. Any connection provided only for a specific purposes and limited duration As defined in the Rule of General Conditions of Energy Supply approved by ERO A wholesale or final consumer of electricity Terms and definitions which are not listed above are provided in the approved and inforce Laws (Law on Energy, Electricity and Energy Regulator), DSO Code, Metering Code, Pricing Rule of the distribution network Operator, and Rule on General Conditions of Energy Supply. 6

7 2. INTRODUCTION AND BACKGROUND 2.1 Legal and Regulatory Requirements This Methodology complies with the requirements under the Law on Energy, No. 05/L-081, Law on Electricity No.05/L-085, Law on the Energy Regulator No. 05/L-084, and other relevant Laws and Legal Acts of Kosovo. In case of any disparity between the existing legal provisions and interpretations within this Methodology, the legal provisions shall prevail. Detailed regulatory and technical requirements, terms and conditions for the connection to the distribution network are specified in the Rule on General Conditions of Energy Supply, Rule on Distribution Network Operator Pricing (DSO Pricing Rule), Distribution Network Code, DSO Metering Code, Electrical Equipment Code and other technical norms and standards. 2.2 Law on Energy No. 05/L-081 This law establishes the general principles and rules that will govern activities in the energy sector in the Republic of Kosovo, with the aim to achieve a safe, secure, reliable, and high-quality supply of energy, to provide the conditions for a functioning open energy market, and to also promote a more efficient use of energy, increased renewable energy sources and co-generation, and improved environment protection during energy activities and activities on the basis of which energy policies are implemented and energy sector development is based. Article 19, described in Chapter 5 of the Law on Energy states that energy activities shall be carried out as competitive, market-based, activities without prejudice to the right of the Regulator to impose public service obligations, and allows in accordance with the Law on the Energy Regulator to cover all reasonable and justifiable costs and expenses incurred by energy enterprises in connection with the discharge of public service, which shall not exceed the costs incurred in the discharge of public service obligations, except for the profit which the Regulator considers reasonable for such services. 2.3 Law on Electricity No. 05/L-085 The purpose of this law is to establish rules and measures for functionalization of the electricity sector, guaranteeing secure, reliable, regular and quality electricity supply, at affordable prices, while paying due consideration to environmental protection and efficient use of electricity. Paragraph 1.12 of Article 28 Responsibilities and Rights of distribution network Operator, provides the DSO with responsibility to draft tariff methodologies for access and connection to the distribution network and Request for connection of tariffs for use of the distribution network and connection charges, in accordance with transparent and non-discriminatory principles that provide efficient economic signals for system users. 2.4 Law on the Energy Regulator Nr. 05/L-084 The Law on Energy Regulator defines the powers, duties and functions of the Energy Regulatory Office, including the conditions for issuing licenses to carry out energy activities, certification of transmission 7

8 system operators, procedures for granting authorizations for the construction of new generating capacity, the creation and efficient functioning of competitive energy markets, and the criteria for regulating tariffs and the conditions of energy supply. Article 47 of this Law determines the regulated tariffs for the supply of energy shall be governed according to tariff methodologies which shall be developed and issued by the Regulator. 2.5 Rule on General Conditions of Energy Supply Article 5, paragraph 3.12 and 3.13 of the Rule on General Conditions of Energy Supply obliges DSO to develop and submit to ERO for review and approval the Connection Charging Methodology, including the necessary forms for connection and use of systems, in accordance with the provisions set in the above mentioned Law and Rule, as well as other rules issued by ERO; and afterwards publish it in the official web site of the DSO and in one of in the daily newspapers. Article 7 of the above mention Rule sets the General Principles of Connection Charging Methodology, respectively, the system operators must develop the connection charging methodology in full compliance with The Rules on Pricing approved by ERO that includes charges for: a) Prior to the activities necessary in order to design, build, commission and maintain the connection in response to a Request for connection by a system user; b) Installation of electrical lines, metering and other power equipment s for the purposes of connection to the entry or exit points to the networks; c) Activities for connection or modification of the system; d) Circumstances where the electrical lines or energy plants to be installed are of greater size than that required for use of network; e) Maintenance and repair (including any capitalized charge) required for connection and meters provided or installed for making a connection to the network, if applicable; g) Disconnection from the network and the removal of equipment (lines, meters) following disconnection; h) Deactivation of a connection in case when a switchgear has been conserved, but ready for operation. Article 7.2 of the Regulation determines that the Connection Charging Methodology shall make provision for appeals by applicants to ERO against connection offers issued by system operators. Article 7.3 of the Regulation determines that the Connection Charging Methodology shall be designed in such manner as not to discriminate between similar parties connecting to the network when charging for new connections or the replacement or alteration of existing connection. 2.6 Rule on Distribution Network Operator Pricing Chapter V of this rule defines the conditions that apply to the connection. Based on this the DSO determines connection charges, defines the elements to be included in determining the cost of connection and define the relationship between costs recovered by connection charges and costs recovered from DUOS charges. 8

9 2.6.1 Connection and system usage Any request of a natural or legal person to connect to the distribution network and make use of the system shall be met by the Distribution Company without any discrimination among equal parties. Any request of natural or legal person for connection to the distribution networks operated by the Distribution Company, will be treated except that: a) Technical capabilities of the network where the connection is requested to be made are insufficient at the date of connection, b) One fails to comply with the standards specified in a project of the facility planned to be connected. c) The facility, planning to be connected to the system, makes the system's electricity quality incompatible with the standards set forth in the applicable law. If the connection to the system is not possible due to any requirements specified above in terms of the connection point requested, then the Distribution Company is entitled to offer another connection point. Any potential or existing customer of the distribution network may require new connections or modification of existing connections to the distribution network for its use. The DSO based on the connection request will provide the best possible way to connect the customers facilities to the distribution network, by defining the connection point and the technical requirement for execution of such connection. Connection point is the physical point at which a customer s electrical facilities or equipment are connected to the network of the distribution network Operator. The connection point is the border between the property of DSO and property of the customer, and is equipped with metering equipment for measuring the delivered energy. Metering Equipment means equipment for measuring the quantity of electricity and other parameters on entry and exit points in the distribution network. Metering point is the point where the metering equipment is placed, for each connection point, and is decided by the DSO. Normally, metering point is the connection point. In specific cases, metering equipment might be placed in a point which differs from the connection point due to technical limitations or requirements. Metering principles applying to certain customers connected to the distribution network are specified in the Metering Code. Ownership of the facilities between the Distribution Company and the customers are as follows: a) Except for the loose connection between the switchyard of the generation plant and the terminal post after the switchyard of the generation plant, the underground cable plant connected to the switchyard of the generation plant through power distribution lines, shall serve as a distribution equipment and is owned by the DSO and can be used for any generation plant connected to the distribution network; 9

10 b) In terms of customers connected to the distribution network, any plant and equipment ranging from the point of connection to the location of use shall be in the possession of the customer. The rest of the line starting from the point of connection including the point of connection shall serve as a distribution plant. The measuring device and meters shall be located on the inlet side of the secondary main bus-bar for transformers with consumption of 400kVA and below, on the inlet side of step-down transformers at customers plants for customer with a transformer power of 400 kva and above and on the inlet side of the switch gear (terminal box etc.) where the consumption begins for low voltage customers. Should a generation or consumption plant is connected to the distribution network via a switchyard of another generation or consumption plant or in an input-output fashion, then the jointly-used or inputoutput switch yard or the switch yard of the generation or consumption plant connected to two separate distribution plants through two different lines, shall be a part of the distribution network. However, the operation and maintenance of the distribution plants that fall within the scope of this paragraph shall be handled by the owners of the relevant generation or consumption plant. 2.7 Principles of Setting Distribution Charges Distribution charges are set to cover certain expenses incurred by the DSO for the purposes of connecting the customers to the distribution network, and are charged via the connection fees. The connection fees charged to the customers are as follows: 1. Fixed Connection Fee covering the costs based on the Shallow Method. All the connection works are completed by the DSO; 2. Standard Connection Fee covering the costs based on mixed method and defined as a charge per meter (m) distance for the connection and charge per kva connected. All connection works are completed by the DSO; 3. Special Connection Fee covering the cost based on the Deep Method and on the grounds of a special project for the connection and reinforcement. Normally, the works should be completed by the customer and transferred to the DSO against off-setting in full the charged Special Connection Fee. For avoidance of doubt, Fix Connection Fee will be charged to all customers in addition to the Standard Connection and Special Connection. The type of fee to be charged to the customers is defined by considering the following criteria: 1. Technical possibility of connection to the existing network 2. Distance between facility to be connected and possible connection point 3. Requested capacity to be connected 4. Existence in the Urban Plan and/or consideration in the development of the Master Plan The principles of the Connection Request in details are covered in Chapter 4 The basis of the charges for connection to the distribution network for end-customers 10

11 2.8 Technical Requirements for Connections Standard technical requirements are described in detail in the Distribution Code, DSO Metering Code, Electrical Equipment Code and appropriate technical Codes and Standards in force. Unless excluded from the abovementioned regulations, the IEC technical requirements are assumed obligatory. Some of the most important provisions of the Distribution Code related to this Methodology are provided in Article (a) and (b) which states the goal and objectives, such as: All existing or perspective customers of the distribution network should be treated equally, Any of the new connections should not cause or be influenced by any negative effect on the existing customers. Specific details of the following technical requirement for connection and guidance are provided in annex 1: Connection Standards, Protection Standards, Earthing Requirement, Voltage Regulation And Control, Short Circuit Levels, Insolation Levels, Power Factor And Phase Balance, Capacitive And Inductive Effects, Voltage Disturbances 11

12 3. PROCESS OF CONNECTION OF END-CUSTOMERS 3.1 Summary of the process The applicants requesting a connection into the distribution network or modifications of the existing connection in the distribution network must obtain Energy Permission for connecting to the distribution network from the DSO when: 1. Constructing new facilities that should be connected to the distribution network, 2. Increasing the distribution network customers approved maximum simultaneous capacity, 3. Changing or reconstructing the connection on distribution network customer s request, 4. Uniting two or more billing metering points into one billing metering point, and 5. Dividing the billing metering point In case of change of the ownership of the facility, for which an energy permission for connection has already been issued, the new owner will not be issued with a new energy permission for connection. For the avoidance of doubt, in case of the change of ownership, the customer needs to provide a transfer of ownership documents. The process of the connection is comprised of the following steps: 1. Connection Request - This is the start of the process where the customers files a Connection Request, together with all required documents identifying the place of connection and unit to be connected. 2. Based on the Connection Request and specific project, DSO is performing an inspection of possible connection and prepares proposed solutions for connection to the customer. 3. Based on the selection of the customer on the proposed solution, customer completes the documentation for the Request for connection, including the following documents: the received network connection project, based on the selected solution any other document not provided in the step 1 4. Based on the acceptance of the final project and receipt of all documents, DSO issues the energy permission together with the payment invoice and due connection fee. The energy permission will not be valid until the fixed connection fee is paid and any other fee payable at the time of the energy permission, as per the energy permission. At the same point DSO is providing a standard contract that defines the rights and obligation of the parties for connection, which needs to be finalized before the next step. 5. Once the customer performs the work, he files a request for technical acceptance. DSO performs the technical inspections, and based on the results issues a process verbal specifying that the customer can be connected, or that there are still specific conditions to be fulfilled for the technical acceptance. 6. After the technical conditions have been inspected and approved by DSO, customer will be required to sign a Connection Agreement with the DSO. This agreement will determine the technical conditions based on which the customer will be and will remain connected to the distribution network. 12

13 7. Once the Connection agreement is signed, DSO will be responsible to seal the meters and other relevant electrical parts of metering group, read the meter, take the first index value and make an official report about the connection to the system, and allow the customer to be connected to the distribution network 8. The energizing of the facility will be effective only after the customer presents a valid signed agreement for electricity supply Connection Request Any natural and legal person, who submits a request for connection to the distribution network, shall provide to the Distribution Company, along with connection request, the following documents: 1. Request form for connection 2. Title deed 3. Rental contract (if the customer is a tenant ) 4. Permissions, such as: a) Building permit or permission to use the building permit or b) Permission certificate from the relevant authorities for request for connections in places where the license is not required 5. Electric project 6. ID number, and business, VAT and Fiscal numbers for legal persons / similar identification as applied for physical persons Any physical or legal subject, who would like to have access to electricity by making a temporary connection to the distribution network for a limited period of time, shall submit a connection request along with electricity project that applicant intends to use. The electricity project that is provided as part of the application, should contain Internal Electric installation which is part of the standard construction plan (electric part), which identifies the potential capacity needs, and is controlled by the relevant/responsible institution. In addition, the customer should provide a draft proposal connection project, identifying the proposed connection to the existing network. The draft project proposal for connection should outline in a simple format the feeders and/or trafo to which a connection is sought for and the premises to be connected, outlining approximate distances, and also technical requirements, as defined in the methodology. A sample format of the connection request is provided in Annex Review and Proposed Solutions Any request for connection shall be reviewed by the Distribution Company in line with the current status of the distribution network and by taking into consideration the need for network expansion or new investment. 13

14 Based on the review performed, DSO will issue a proposed energy solution. The proposed energy solution is a written document prepared by DSO to the customers, outlining possible connection point, as well as technical requirement for that connection. When preparing the energy solution and after the inspection in the field DSO will take into consideration the following conditions: a) Transformer occupancy rate b) Voltage drop c) Conductor cross section and capacity d) The network (poles, cables etc.) are suitable for connection e) Availability of the distribution panels for connection f) other Based on the above mentioned criteria team will prepare the energy solution, outlining the possible connection point to the distribution network, as well as technical requirements and obligations of the parties. The prepared offered solution will be issued no later than thirty [30] calendar days from receipt of the completed application for connection to the low voltage network and ninety (90) calendar days for connection to the medium or high voltage network. Once the technical solution is accepted by the customer, it is converted into an energy permission. I. Transformer Occupancy Rate The actual load to the transformer is based on the actual connected customers, and considering the new customer load the transformer power shall not exceed 70% of the transformer power for the last 12 months. II. Voltage Drop Is the amount of voltage loss that occurs due to impedance through all or a part of a circuit. Formula for calculation of voltage drop is as follows: Where: % e = k x P x J x L x 10-7 %e Voltage Drop K Coefficient P Network Load (W ) J The power density (J) is the distributed load per meter. For calculation purposes the power density should be taken 20 W/m L Length between poles ( m ) Examples of Voltage Drop will be shown in Annex 1, section III. Capacity of cable to carry out the Electricity (A) Current carrying capacity is the current value that can be carried continuously without exceeding the maximum temperature value determined for the insulation of the cable. 14

15 Current carrying capacity tables of cables are shown in Annex 1, section Energy Permission Upon acceptance by the customer of a specific proposed energy solution, the later will be converted into a final energy permission, officially issued by the DSO, outlining the following: 1. Customer information and identification; 2. Connection point and metering point identification; 3. Technical details for the connection; 4. Responsibility of the DSO for the connection; 5. Responsibility of the customer for the connection; 6. Connection fee and payment terms; 7. Validity of the document; 8. Other specifics. The validity of the energy permission for low voltage customers is 90 days, while for special projects and middle voltage customers the validity is 180 days. Within this period the customer is obliged to request for technical acceptance, otherwise his energy permission will not be valid anymore Technical Acceptance After the completion of the construction, customer shall request from DSO the technical acceptance of the connection and metering point. Within 7 working days, DSO is organizing a technical acceptance in the field, and based on the results of the technical inspection a technical report is prepared, containing recommendations for corrections and amendments to comply with the energy permission if any. Once no corrections are needed, within two working days DSO is issuing a DSO connection Approval Connection Agreement Each customer is provided with the standard distribution connection agreement, as shown in Annex 2, section 7.3, which should be finalized upon issuance of the DSO Connection Approval. The capacity that the customer presents in the connection request, and as specified in the energy permission, shall constitute the contracted power of the customer. The minimum electricity capacity taken from or given to a distribution network through a connection point shall not exceed the contracted power specified in the connection agreement. If the customer violates the contracted power, then the sanctions as foreseen in the connection agreement shall be imposed. In order to eliminate any risk over the safety of the distribution network that occurs as a result of violation of contracted power by customer himself, the Distribution Company should warn the customer who violates the contracted power. Generation companies and other customer are obliged to eliminate this violation of the contracted power within thirty (30) days starting from the date when they receive the official warning notice. In case of any failure to fulfill this obligation, the electrical facility of the customer might be disconnected from the network. Any cost resulting from disconnection and reconnection shall be covered by the customer. 15

16 The Distribution Company shall reserve the right to install automatic power cut-off devices in order to control the customer, respectively Distribution Company controls not to receive and give electric power over the contracted power. The customer is entitled to request for an amendment in the connection agreement in an effort to enhance the contracted power through a revised electrical project. The Distribution Company shall review the revised electrical project offered by the customer, and deliver its reviewed outcome, in a written format within fifteen days. If the request to increase the contracted power seems appropriate, then the connection agreement shall be amended in a manner to contain the revised electrical project Connection to the network The necessary connection for electrical facilities shall be made following the connection agreement and within the period of time specified in the agreement, such as: a) Within three working days for urbanized areas b) Within five working days for, non-urbanized areas The Distribution Company is responsible to seal the meters and other relevant electrical parts of metering group, read the meter, take the first index value, make an official report about the connection to the system, and allow for the customer to be connected to the distribution network Energizing Energizing of the customer will be effected within 1 working day, after presentation of a proof of a valid supply contract Termination of connection from the distribution network As long as there are electrical facilities and equipment connected to the distribution network at the location specified in the connection agreement, the agreement shall remain in force and no additional request shall be made for a new connection agreement if owner/customer changed. The customer reserves the right to disconnect his/her electrical facility and equipment from the distribution network and terminate the use of the distribution network. The customer shall inform the Distribution Company in written at least four (4) months prior to the disconnection of his/her electrical facility and equipment from the distribution network, and at least two (2) months prior to the termination of the usage of the distribution network. Unless the Distribution Company and the customer agree on a different time period, they shall remove their assets on each other's land within four (4) months following the physical disconnection from the system. If the customer requires the supply of electricity to be permanently disconnected, the request in writing shall be submitted to the DSO for the work to be carried out. When the DSO receives a written request to effect a disconnection, it will take all reasonable steps to remove the electrical facilities and/or electric lines in accordance with customer s reasonable requirements. Normally, with the termination service, equipment will be removed within 28 days, but a longer period is required when 16

17 the MV substation plant is removed. In the case of MV supplies, the DSO should be consulted at an early stage, and a program for removing equipment will be subject to individual assessment. On termination of the Connection Agreement, the DSO retains the right to remove its electrical facilities and electric lines, and charge the customer if it does so. Devices which are not cost effective anymore for the DSO to return the investments (e.g. electric lines laid underground) will be secured and left at the premises; but if the Customer requires the DSO to remove them, the cost of removal will be paid by the customer. All these devices/equipment will remain in the DSO s property until otherwise agreed in writing between DSO and the Customer Disconnection of customers connection The Distribution Company is entitled to disconnect the customer's electrical facility and equipment. The disconnection of the customer's power should occur if one of the following takes place: a) Any situation that requires disconnection of the power as per the connection agreement and the provisions of the applicable law; b) Any situation that requires any part of the distribution network to be tested, checked, restored, maintained repaired or expanded by the Distribution Company; c) Any situation related to force majeure; d) Any situation that requires the safety of life and property; e) Any accident, system failure or emergency that affects or is likely to affect the distribution network or another system that power is drawn from or provided through; f) Based on the request of the supply company; g) Based on the request of the customer; h) Non-compliance with the energy permission, and/or connection agreement; i) If the customer doesn t have a valid supply contract; j) If the customer is obstructing the access to the metering devices, or is using unauthorized energy After eliminating the situation which leads to disconnection, the electrical facility and equipment of the customer shall be re-energized as soon as possible. The customer shall have the right to request in written form a disconnection at any connection point. This request shall take into consideration by the Distribution Company in line with the agreement signed with the customer. The cost of this procedure shall be calculated and issued by ERO. Any expense related to procedures of disconnection and reconnection, due to customer himself or upon the written request of the customer, shall be covered by the customer. If the DSO has to de-energize a connection due to customer s request, or customer s failure to comply with the terms of the Connection Agreement, the de-energizing and any subsequent re-energizing will be at the customer s expense. If it is necessary to disconnect the customer for any reason (in the scope of this Methodology, such as to remove DSO s electrical facility and/or electric lines from the premises), any element of the Connection Charge which is not yet paid will become due immediately. Temporary disconnection (and reconnection) of the premises, based on customer s request will be at the customer s cost. 17

18 Access and intervention rights The customer shall grant the right to the Distribution Company to install, operate, check, test and dismantle the connection and the distribution network's equipment, and have access to the meters without any time limitation, as specified in the applicable law. Any party involved in the connection agreement shall not intervene with any device and equipment without the consent of the other party, except for the following circumstances: a) Any emergency intervention necessary to ensure the safety of life and property; b) Any intervention by the Distribution Company to operate the distribution network as per the applicable law. 3.2 The Mode of Communication Communication between customer and DSO/Supply Company will be done mainly through the Customer Care Offices. Every request submitted by customer for a new connection will be registered in database, where as a result a unique barcode will be generated, which further will be provided to customer. Customers have the possibility to communicate with the customer care officer or call center operator anytime they want to know more about the status of their request. Additionally, customers will have the possibility to check electronically their status of request, through the official website of DSO/Supply company (through DMS). During different stages of implementing procedures, communication between parties will be acceptable for notification purposes, respectively notifying the other party on completion of some of the actual steps, as defined in the methodology. 18

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20 3.2.1 Customer right to compain The applicant reserve the right to complain if he is not satisfied with the terms offered by DSO, or with the approach DSO has followed during this process. In this content, the applicant may complain at the KEDS Customer Care Department. If the Applicant is not satisfied with the answer, or DSO s reactions after the complaint, he has the right to submit a complaint to the Energy Regulatory Office (ERO) 20

21 4. THE BASIS OF THE CHARGES FOR CONNECTION TO DISTRIBUTION NETWORK FOR END-CUSTOMERS 4.1 Connection Principles The connection fees charged to the customers are as follows: 1. Fixed Connection fee covering the costs based on the Shallow Method. All the connection works are completed by the DSO 2. Standard Connection fee covering the costs based on mixed method, defined as a charge per m distance for the connection and charge per kva connected. All connection works are completed by the DSO 3. Special Connection fee covering the cost based on the Deep Method and on the grounds of a special project for the connection and reinforcement. Normally, the works should be completed by the Customer and transferred to the DSO against off-setting in full the charged Special Connection Fee. For avoidance of doubt, Fixed Connection fee will be charged to all customers in addition to the Standard Connection and Special Connection. The type of fee to be charged to the customers is defined by considering the following criteria: 1. Technical possibility of connection to the existing network; 2. Distance between facility to be connected and possible connection point; 3. Requested Capacity to be connected 4. Existence of Urban Plan and/or considered development in the Master Plan Technical Requirments Yes No Voltage Level 6 kv - 35 kv 6 kv - 35 kv Maximum Peak > 0 kva > 0 kva Connection Length > 0 m > 0 m In Master or Investment Plan - - Urban Plan - - Connection Type Special Project Special Project The customer is obliged to pay the Distribution Company the connection fee calculated as per the following methodology, approved by the Regulator and can be revised on annual basis. The operational and maintenance costs of the connection entities shall be covered by the relevant parties within the connection boundaries Fixed Fee The fixed fee covers the direct expenses related to approval, issuance of permission and subsequent technical solution. Fix fee is set at 30 for the capacity less than 50 kva on low voltage. Fix fee is set as 140 for the capacity more than 50 kva low voltage or any capacity on middle voltage 21

22 4.1.2 Standard Connection Fee (Mix Method): The standard fee will be calculated per meter distance to the connection point and per kva on requested capacity, as shown in the table below: Technical Requirments Voltage Level Yes 0.4 kv Maximum Peak < 15 kva Connection Length < 50m > 50m In Master or Investment Plan Yes Yes No No Yes Yes No No Urban Plan Yes No Yes No Yes No Yes No Connection Type Fixed Fixed Fixed Fixed Standard Special Project Standard Special Project Maximum Peak 15 kva < - <50 kva Connection Length < 50m > 50m In Master or Investment Plan Yes Yes No No Yes Yes No No Urban Plan Yes No Yes No Yes No Yes No Connection Type Fixed Fixed Fixed Fixed Standard Special Project Standard Special Project Maximum Peak > 50 kva Connection Length < 50m > 50m In Master or Investment Plan Yes Yes No No Yes Yes No No Urban Plan Yes No Yes No Yes No Yes No Connection Type Standard Standard Standard Standard Special Project Special Project Special Project Special Project Technical Requirments Voltage Level No 0.4 kv Maximum Peak < 15 kva Connection Length < 50m > 50m In Master or Investment Plan Yes Yes No No Yes Yes No No Urban Plan Yes No Yes No Yes No Yes No Connection Type Fixed Standard Fixed Non Standart Standard Special Project Standard Special Project Maximum Peak 15 kva < - <50 kva Connection Length < 50m > 50m In Master or Investment Plan Yes Yes No No Yes Yes No No Urban Plan Yes No Yes No Yes No Yes No Connection Type Special Project Special Project Special Project Special Project Special Project Special Project Special Project Special Project Maximum Peak 50 kva < - <100 kva Connection Length < 50m > 50m In Master or Investment Plan Yes Yes No No Yes Yes No No Urban Plan Yes No Yes No Yes No Yes No Connection Type Special Project Special Project Special Project Special Project Special Project Special Project Special Project Special Project The Standard connection fee will be applied in the cases when: A. There is a technical possibility And either: 1. The requested capacity is more than 50 kva; and 2. Under 50 m distance. Or: 1. The requested capacity is less than 50 kva; 2. The connection distance is more than 50 meters; and 22

23 3. The facility to be connected is in the Urban Plan. Similarly this is applicable for connections foreseen in the Master Plan, if the customer agrees to wait for the completion of the Master Plan project. B. There is no technical possibility and the requested capacity is less than 15kVA And either: 1. The request is not foreseen in the Urban Plan, and 2. The distance to connection point less than 50 m. Or: 1. The facility to be connected is foreseen in the Urban Plan, and 2. The distance to the connection point from the trafo station is more than 50 m but less than 650 m. The standard fee will be calculated per meter and per kva based on the following table Capacity Average per 1 kva 0-50 kva 0.00 > 50 kva Distance Average per 1 meter 0-50 m 0.00 > 50 m Special Connection Fee (Deep Method): In all other cases, when the customers require connection on the Low Voltage or any connection on the MV, a Special connection Fee will be charged, based on the project and as per the Deep Method. The special connection fee will be defined based on the individual special project for the customer, specifically for fulfilling the connection. The detailed project will be prepared by the customer s technical responsible person and will be approved by the DSO. Customer will provide the evaluation of the completed works, which will serve as a basis for issuance of connection fee invoice. Connection fee invoice will be settled by transferring the constructed assets to the DSO. For avoidance of doubt metering group are not covered either through the fixed or standard/special connection fees Other Fees Project cost: There will be no costs considered for the electricity project which are presented for the first time by the registered electrical companies on behalf of the applicant. The project can be rejected due to incomplete documentations or lack of fulfillment of technical conditions determined during the detailed examination of the projects submitted to DSO. If applicant 23

24 submits to DSO revised project with additional documents by registered electrical company for the 2nd time, they will be required to pay 10 Euro on behalf of project control fee. 4.2 Special Cases Temporary Connections DSO can provide a temporary connection (TC) to supply electricity for the Construction Company who are building a new home or business premises. Connection request for a TC can be done either through the distribution or supply companies. A temporary connection will be registered in the system as a commercial customer (0.4 kv category II) with three phase meter of max. 120 A. Daily organizations or events will not be approved by the DSO as a temporary connection to the network, but they can be connected in the meters belonging to the municipality in certain places (square, pedestrian area). During such requests for connection, Municipality can allow them to connect into the public lighting system anywhere based on their contracted power. All the installations done by the customer up to the connection point, as well as operation maintenance, repair and replacement works are responsibility of the customer. Third parties cannot benefit from the temporary connection. If the transformer and supply line are not permanently installed, after the customer's temporary connection requirement has been stopped, the installation shall be disassembled by the customer Sole User Assets When an approval decision is issued to the Applicant for non-standard connection for isolated customer, the non-standard connection is used exclusively for Applicant s electricity consumption/overtaking, and as such the Applicant shall be covering the cost of construction with its own funds When the non-standard connection is designed/constructed by a contractor, the following principles shall apply: 1. The contractor will construct the connection according to the construction permit and the basic plan for the facility; 2. The basic plan shall list the building equipment, devices and material, as well as the nonstandard connection s construction manner; 3. The contractor can notify the DSO after the completion of each construction stage in compliance with the basic plan, and can invite the DSO to examine completed works for the purpose of allowing the DSO to determine whether the completed stage has been constructed in compliance with the basic plan; 4. If inspection has been performed, DSO shall prepare minutes on the performed supervision, and they must be signed by the contractor as well. In cases of shortcomings, they shall be recorded in the minutes; 5. If the inspection has been performed, and shortcomings have been noticed, the contractor shall be obliged to eliminate all shortcomings recorded in the minutes and shall invite the DSO to confirm their elimination by means of minutes; 24

25 6. In continuation to point 5 above, the contractor can initiate the next construction stage when the DSO in the prepared minutes has determined that all shortcomings identified in the previous minutes have been eliminated. At the time of initial connection the Applicant will owe a fixed connection fee only. However, in case in the future, the best possible connection to a new customer is from the line and/or substation constructed by the customer, the customer is obliged to sell to the DSO the facilities up to the new connection point. The price will be based on external evaluation or amortized value. Subsequently, both customers will be charged a special fee, covering the cost of the line purchased and expenses incurred for its strengthening based on their required capacity as a percentage from the total capacity Request for connection for a same Point of connection Joint Connection arises when the DSO receives two or more connection requests to a same point of connection, which could individually make use of the same part of the distribution network, but if there is insufficient spare capacity or other network constraints on the distribution network, than the DSO will prevent their connection. The DSO will apply a joint connection request in order to prioritize the request for connections fairly. The connection request date will be used to appropriately place the Connection Offer in time order, in a way that the first Connection Offer is made to the first Applicant who submitted the request for connection in the process, and so on. All parties will be notified in written, if their connection request is being considered for Joint Connection, or is considered as a joint part with other connections, and the validity period of any current Connection Offer will be reduced to thirty (30) days from the date of such notification. Connection request for newly constructed buildings that have more than one ultimate customer, will be considered as a joint application and the fixed fee will be charged based on the number of end metering points, in addition to any standard or special fee assessed with the provisions of the chapter The right of servitor required by the DSO Before the DSO begins its works it will require, depending on the case, the right of servitor for any substation site on which electrical facility is placed and involved in the connection, or, alternatively, the long term lease of that site, and in either case an easement for its electric lines. The right of servitor is established through a legal agreement between the DSO and the landlord, and another customer in compliance with applicable laws. The DSO requires this agreement to be completed before the DSO energizes the connection, or in cases where agreement is required from a third party, before the DSO commences its work. In cases where land rights are required from a third party, an estimate of the cost of acquiring those rights will be included in the connection charge to the applicant. The DSO will require payment of the estimated amounts in advance. If the DSO s estimated costs were below the actual expenses, DSO reserve the right to ask the applicant to pay the shortfall before proceeding any further. Contrary, if the DSO s estimates were higher, then DSO is obliged during the conclusion of proceedings to refund the difference to the applicant. 25