Individual parameters of the loss incentive should provide strong incentives (in the form of sanctions and/or rewards) to the HEDGE, both for the return of losses to previous levels and for further impairment, as the increasing level of losses ends up burdening all consumers with additional costs of hundreds of million euros each year. This was noted by the Hellenic Association of Energy Suppliers (EPEN) in a letter from the ESPEN on the recommendation of the Administrator of the EDP for the Allowable Revenue of the 2nd Distribution Regulatory Period 2025-2028, as part of the relevant Public Consultation. CORVERSE In particular, the baseline value of the reference losses, i.e. the ‘acceptable’ level of losses, the cost of which is recovered from the electricity market in general (i.e. from the supply and/or directly from consumers through the XXXs) should either be determined on the basis of a reasonable level of losses as derived from the distribution networks of the other EU Member States (benchmark), or maintained stable at the level corresponding to the parameters of the loss incentive of the previous Regulatory Period (2021 – 2024), i.e. at a level clearly below 10,0%. The rate of annual reduction of d(lfref) reference losses, as well as the factor for regulating the power of the incentive (sf), should be taken at prices close to the maximum of 5,0% and 100% respectively, as set out in RAE Decision No 1432/222.10.2020. At the same time, the unit cost of reporting energy losses to the interconnected system (LIRref) should be calculated on the basis of data for a period of at least three (3) years, in accordance with the RAE Decision No 632/2021. In addition, the calculation of the reference costs should include the total of the Advances Accounts (AP 1 – 3) of the Balance Sheet, in accordance with the Motility Regulation to limit losses in the EDP (RAE Decision 1432/2020).
ESPEN: Fixed-price electricity supply tariffs
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