Questions
How to calculate the capacity charge if the prices change mid-month?
In this case, you calculate a weighted price for the tiers based on the number of days each price was in effect. Then, you find the average peak for the month as before.
Example: Midtnett changed the price for tier 2 from 240 NOK to 276 NOK starting from October 10th. The price for tier 2 in October would be:
$$ 240 \cdot \frac931 + 276 \cdot \frac2231 \approx 265,55 $$
How to calculate the capacity charge if a customer moves mid-month?
In this scenario, you calculate the peak as usual and multiply it by the price for the tier. Then, you weight it by the number of days the customer was at the measurement point. For example, if a customer has a meter starting from July 15, you would find the peaks from July 15 to July 31 in the usual way and then multiply the price of the tier by (17/31). If the customer lives there for fewer days than the number of days needed to find peaks for the month, then you take the peak from as many days as they were there that month.
Power or Energy?
In the industry, the terms power (measured in kW) and energy (measured in kWh) are sometimes used interchangeably, but they are closely related. Power refers to the work an appliance does, i.e., the energy consumed, per second, and thus shows a snapshot of a given load or sum of loads. However, the energy used over a certain period of time is what forms the basis for electricity costs. For example, with a spot price agreement, it's the hourly consumption in kWh multiplied by the spot price from the power exchange. Such hourly consumption will, therefore, always correspond to the average of the wattage consumption during that hour. For example, if a given consumption varies between 4 and 6 kW evenly distributed throughout the hour, the energy consumed in that hour will be 5 kWh.
The distinction between power and energy has gained new importance in recent years in connection with the new delivery charge model, which includes a capacity charge for simultaneous consumption (previously often called a demand charge). The basis for calculation is not instantaneous power peaks but rather the consumption for a whole hour (and the highest such values during a month).
What is the difference between power companies, DSOs, and electricity suppliers?
Power companies/producers own and operate power plants and thus sell electrical energy in the market. Statkraft is by far the largest power producer in Norway (about 50% of Norwegian electricity production), and the others are usually also publicly owned; either by counties, municipalities, or intermunicipal organizations.
DSOs are responsible for transporting electrical energy from power plants to end customers, as well as operating and maintaining the power grid in their area. The approximately 100 DSOs in Norway have responsibility for specific geographic areas, have a practical monopoly on their activities, and are therefore closely regulated by government authorities.
Electricity suppliers handle the sale of electrical energy and related services to end customers. There are over 130 electricity suppliers, offering various agreements and service packages. Some companies are privately owned, while others are municipally owned.