We coordinate and process legal levy systems

#6. Trusteeship –

We coordinate and process legal levy systems

The German and Belgian legislators have transferred the responsibility for coordinating and processing legal levy systems that promote environmentally friendly technologies to the transmission system operators in their respective countries. Elia and 50Hertz therefore act as trustees, collecting these levies from consumers in Belgium and Germany and coordinating their distribution to parties who integrate environmentally friendly technologies into the grid. If the electricity generated from RES is not directly marketed, Elia and 50Hertz are responsible for selling this electricity via the power exchange.

HOW WE DRAW ON AND AFFECT THE CAPITALS: INPUTS AND OUTCOMES

Financial

We are responsible for collecting levies from consumers through their energy bills and coordinating the distribution of these to appropriate parties, so rewarding RES producers and encouraging the integration of environmentally friendly technologies into the transmission grids in our respective countries.

Social & Relationship

We work closely with national authorities, regulators, other TSOs, DSOs, consumers and energy producers to ensure the smooth coordination of the legal levy systems in Belgium and Germany. We reinforce our relationships with each of our stakeholders, carrying out our responsibilities in an open and non-discriminatory way and cementing their trust in us and our reputation as a driver of decarbonisation in the process.

STRATEGIC CONTRIBUTION

Deliver the infrastructure of the future & develop and operate a sustainable power system RISK MANAGEMENT

Most relevant opportunities

Most relevant risks

Relevant role played in the energy transition leading to a sustainable future

Changing/ new regulatory conditions; Early termination of Transmission System Operator licences; Cash flow

Please see the chapter entitled 'Risk management' for an explanation of these

We play an active role in promoting the integration of environmentally friendly technologies into the transmission system by acting as trustees in Belgium and Germany.

HOW WE DELIVER VALUE

Material topics

We create value by coordinating and processing legal levy systems which are related to the integration of environmentally friendly technologies (including RES technology) into the grid, in line with our legal responsibilities and political and social ambitions to further decarbonisation and reach net zero.

As part of our responsibilities, we oversee the selling of renewable energy in electricity markets in cases where producers do not do so themselves; we undertake this in a transparent and non-discriminatory way.

In Germany, for example, the levies we coordinate include the Renewable Energy Sources Act (EEG) levy and the Combined Heat and Power Act (KWKG) levy. We collect these levies from consumers and coordinate their distribution to appropriate recipients, so supporting the integration of RES into the grid and energy system.

Broadly speaking, the size of the levies paid by consumers depends on the difference between the revenues received by producers when they sell their RES on the market and the subsidy amount set by governments to encourage the production of RES. Should a producer sell their renewable energy for less than the amount stipulated by the authorities, the shortfall will be made up for by Elia or 50Hertz, who will pay them the difference by using the levies collected from consumers.

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