93RX Statnett 30

TIDM93RX

RNS Number : 1893L

Statnett SF

04 September 2019

Statnett SF - regulatory benchmarking report published

The Norwegian Water Resources and Energy Directorate (NVE) has published a set of consultancy reports that show an increase in investment unit costs and decreased measured cost efficiency compared to the previous benchmarking. Statnett has increased investment levels significantly during this period, while unit costs for operations have not increased.

- Even though it is not unnatural that our measured efficiency decreases somewhat during this period of high construction activity, this is of course worrying. There is a cost side to ramping up construction capacity to be able to complete substantial grid investments over a relatively short period of time. On the other hand, we also find that the European benchmarking study does not adequately adjust for specific Norwegian conditions related to topography and climate as well as the higher general cost level in this country, says CEO Auke Lont.

Statnett finds it reasonable that NVE considers this in its further work.

- Statnett's goal is to be among the 25 per cent most efficient TSOs in Europe. Thus, we are not satisfied with this result. We have already initiated a wide range of efficiency measures, some of which have not shown its full impact yet. But we are working towards our ambitious goals, says Lont.

Another study was recently published by ENTSO-E, the European Network of Transmission System Operators for Electricity. The study analyzes the total costs in 2017 for power transmission in European countries, and it shows that Statnett's costs for transmitting power are among the lowest in Europe. Norwegian transmission costs amount to EUR 5 per transmitted MWh. As a comparison, the corresponding figure for Denmark is close to EUR 10 per transmitted MWh.

- These figures are also important. They reflect a well utilized system - that gives Norway considerable competitiveness into the electric future. We have a robust system with good access to reserves and a well-functioning power market, says the CEO of Statnett.

During the latest decade, Statnett has invested NOK 47 billion in new and upgraded grid installations. This is a substantial increase compared to earlier periods, and it has caused a need to develop capacity in a specialized supplier market. Combined with some time critical grid development projects, this has influenced the costs. Statnett now sees that this has been stabilized and works actively to reduce the grid development unit costs. New renewable power generation as a result of the introduction of green certificates, new consumption patterns and the need for security of supply, have all been important drivers for the accelerated rate of grid development. The needs and Statnett's mission are described in the governmental white papers on energy and grid development. The total costs have not exceeded the level predicted in 2013, when Statnett's equity was adjusted for the task.

Links

NVE: www.nve.no

ENTSO-E study: https://docstore.entsoe.eu/Documents/MC%20documents/ENTSO-E_Transmission%20Tariffs%20Overview_Synthesis2017_Final.pdf

For media requests, please contact Henrik Glette, SVP Communications and External Relations at +47 932 33 010

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

DOCEAPNLELPNEEF

(END) Dow Jones Newswires

September 04, 2019 04:51 ET (08:51 GMT)

Statnett 30 (LSE:93RX)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024

Statnett 30 (LSE:93RX)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024