Concession Fee; Payment

Concession fees are charges paid by energy and water utilities for the right to use public roads for the installation and operation of lines used to directly supply end users within the municipal area with electricity, gas, and water. For the purposes of this provision, the supply to end users also applies when a redistributor is supplied with electricity, gas, or water via public roads and then forwards these utilities and water to end users without using such roads.

The amount of the respective concession fee is determined by the concession agreement that the energy or water utility enters into with the municipality or the special-purpose association. This agreement, in turn, is subject to statutory requirements.

Concession fees for electricity and gas are agreed upon in cents per kilowatt-hour supplied. They are included in the energy price billed by the energy supplier to the end customer. The maximum permissible amounts are regulated in the “Regulation on Concession Fees for Electricity and Gas.” They depend primarily on the size of the municipality (population), the voltage level of the grid connection (low voltage or medium voltage), and the consumption pattern (power and annual consumption). The concession fee for water is calculated in accordance with the “Order on the Permissibility of Concession Fees Charged by Companies and Utilities for the Supply of Electricity, Gas, and Water to Municipalities and Municipal Associations.” The fee for the use of the water distribution network is calculated as a percentage of the supply services provided to all consumers within the municipal area.