Ef­fi­cien­cy bench­mark­ing for trans­mis­sion sys­tem op­er­a­tors

• Further information

In the first and second regulatory periods individual efficiency scores were calculated on the basis of international efficiency benchmarking that included transmission system operators from other Member States of the European Union (in accordance with section 22(1) ARegV).

A relative generic network analysis for determining individual efficiency scores was conducted for the third regulatory period. This is a procedure for establishing network structures and plant quantity structures that provide an optimal cost to network benefit ratio (reference network). The TSO with the score closest to the reference network is classified as efficient in accordance with section 22(2) ARegV.

The relative generic network analysis was used instead of international efficiency benchmarking in accordance with section 22(1) ARegV. The robustness of international efficiency benchmarking within the meaning of section 22(2) sentence 1 ARegV did not exist with regard to the base year 2016 and the third regulatory period.

In 2017 the Bundesnetzagentur asked the federal regulatory authorities of 32 European countries whether the required level of transparency could be expected from international efficiency benchmarking. It was not possible to confirm this with the level of certainty necessary for the number of network operators needed to participate in international efficiency benchmarking.

A reference network analysis is a procedure for measuring structural efficiency of existing network structures compared with a reference network.

The reference network is developed using an optimisation tool to establish network structures and plant quantity structures for the model that, under the given conditions, in particular the need to operate a technically secure network, provide an optimal cost to network services ratio.

A relative generic network analysis establishes relative differences between the costs of actual plant volumes and the costs of a reference network by comparing a number of operators. In the first part of this analysis, an optimal reference network is modelled, after which each TSO's deviation from its respective reference network is then calculated. A TSO's optimisation potential is derived by comparing each individual TSO with its respective reference network. In a relative generic network analysis, companies are not compared with a supposedly "optimal network". A TSO's known distinctive features and restrictions are taken into account, and the TSO scoring closest to the reference network sets the benchmark, with an efficiency score of 100%.

Specific information about the details of the relative generic network analysis is provided in the report compiled by the expert consortium of BET (Büro für Energiewirtschaft und Technologie) and IFHT (Institut für Hochspannungstechnik). A version of the report in which confidential parts have been blackened out is available below, and from this document the reasons for the decisions are recognisable. In the interest of publishing the report, there was no final review of the blackened out sections of text as to whether they may potentially contain decipherable trade and operating secrets.

The expert report on the reference network analysis for the third regulatory period is available here: Gutachten zur Referenznetzanalyse für die Betreiber von Übertragungsnetzen (pdf / 2 MB)

Further information