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Background

“What does incentive regulation mean to us?”

Liberalization has meant that the costs and risks of grid usage in the electricity and gas sector have become a part of overall energy costs that companies can individually customize.

It is often possible to regularly optimize the costs of continuous grid usage, connection and changes to connections. Regulation means that these costs are also subject to continuous change.

At the same time, related issues are a separate field: in practice, industrial enterprises are almost always at a disadvantage in terms of expertise and negotiating compared to their grid operators, which operate their core business in this field.

Incentive regulation has meant that integrated energy concerns have obvious margin interests in the grid sector. This leads to the same conflicts of interests between seller and buyer as in all markets.

Since industrial enterprises are affected by the measures taken and regulations made by the regulator as well as grid policy, active participation in the relevant policy and regulatory processes has become an important element of grid cost strategy (e.g. consultation processes) in individual cases.

In practice, the optimum grid cost strategy needs to be integrated into other energy processes within the company in order to take advantage of recurring cost savings and avoid risks.

Industrial grid cost management therefore requires continuous monitoring and application analysis of the environmental developments. On the other hand, the associated processes of load measuring and forecasting, procurement, contract management and reporting must support and secure plant-specific measures.

The enexion TEC® Approach efficiently realizes this task for companies with regard to the grid system.