The network charge is the sum that a user of the transmission system is liable to pay for the use of the system and it is intended to cover the costs incurred by the electricity system operators in each year of the regulatory period.

The network charge for the electricity system is established by the Energy Agency in accordance with the Legal Act on the methodology for determining the regulatory framework for electricity system operators. The agency also determines the tariff items to be charged in accordance with the provisions of the Legal Act for determining the regulatory framework and network charges for the electricity system operators.

The Energy Agency determines tariffs items for the accounting of:

• network charges for the transmission system
• network charges for the distribution system
• connected load charges
• network charges for excessive reactive power consumption

Network charges for the transmission and distribution system are intended to cover eligible costs incurred by electricity operators for:

• system maintenance, operation and development
• measurement of electricity, processing and transmission of measurement data, and issuing of consents and project conditions
• covering losses of electricity in the system
• for ancillary services, the purpose of which is to compensate power fluctuations within the system; voltage and reactive power control, and black-start capability

The network charge for connected load is paid by each final customer as a one-off amount in relation to the connected load at the time of the first connection to the network and whenever the power connection already exists, except for temporary connections. The network charge for connected load is used to cover the eligible costs of the electricity system operators.

The network charge for excessive reactive power consumption is earmarked to cover the cost of providing network voltage conditions, while encouraging users to take measures to reduce reactive power consumption.