Cost control of the access fee to the transmission grid for the distribution network operator

Abstract: In the French liberalised electricity market, the Distribution Network Operators (DNOs) and the Transmission Network Operator (TNO) are both financed by an access fee paid by any client connected to their network. Within this frame, any DNO’s is a client of the TNO as a user of the transmission grid. It is regulated by the French Government, following the recommendation of the national energy regulation committee (CRE). The access fee to the transmission network is a major expenditure for ERDF, the national DNO. It is also a rather new matter of concern since the electrical system was previously vertically integrated. One aim of this master thesis is to feed the evolutions of ERDF’s cost control strategy. In order to emphasize the academic interest, this report takes the point of view of a DNO looking for the best behaviour in response to the regulatory frame, based on ERDF’s example. In addition to that, it provides an introduction to this specific piece of regulation and it should bring new elements toward a better understanding of the access fee behaviour. The regulation, decided for at least the four years following the master thesis, is taken as an assumption in this study. This present report is solely the result of the author’s personal interpretation, including when referring to ERDF’s strategy. The reflections, perspectives and propositions do not commit thencompany.