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Because Statnett's operations are monopoly based, revenues are regulated and controlled by the authorities, by the Norwegian Water Resources and Energy Directorate (NVE).
Statnett’s operating revenues consist of fixed grid tariffs from the customers and congestion revenues. Congestion revenues arise when electricity is transmitted from areas with low electricity prices to areas with high electricity prices in the Nordic region and between Norway and the Netherlands. The grid tariff is established in advance for each calendar year.
The revenues are regulated and controlled by the authorities by the Norwegian Water Resources and Energy Directorate (NVE), and it is annually established a permitted revenue. The permitted revenue will cover the costs of development and maintenance of the grid, as well as generate a reasonable return on investments in the grid. The requirement is that the transmission grid is operated, utilized and developed efficiently.
If the operating revenues diverge from the permitted revenue a higher or lower income will occur. According to NVE’s regulations the higher or lower income will level out over time through adjustments of future grid tariffs.