RME Proposes to Abolish Construction Contributions and Introduce a Standardised Connection Fee Model

The Current Regulatory Framework for Construction Contributions

Under the existing regulation, customers are required to pay a construction contribution when their connection to the electricity grid necessitates investments in increased grid capacity. This may occur in cases of new connections, increased demand for capacity, or the need to improve supply quality. The purpose of the scheme is to ensure that costs triggered by individual customer needs are not borne by the broader customer base.

Typically, customers cover 50 percent of the costs associated with necessary grid reinforcements, provided the measures are directly triggered by their connection. The contribution is calculated individually and reflects the actual costs of the specific investment. This process often involves extensive case handling and can result in significant uncertainty for customers regarding the final cost of connection.

Rationale Behind the Proposed Reform

In its recommendation, RME argues that the current scheme does not ensure a fair distribution of costs. Rather than placing the financial burden solely on the “last customer” whose request triggers grid investment, the new model is based on the principle that grid expansion is driven by the collective and long-term needs of all grid users.

Consequently, RME proposes to discontinue the current model and introduce a new scheme based on standardised connection fees. The aim is to simplify the regulatory framework, enhance predictability, and reduce administrative burdens for both grid operators and customers.

Key Features of the Proposed Connection Fee Model

The proposed model introduces standardised connection fees for all customers with an agreed capacity exceeding 1 MW who seek new connections or increased capacity in the regional or transmission grid. The connection fee will be structured as two distinct tariffs—one for the transmission grid and one for the regional grid—calculated based on the requested capacity.

RME also proposes to retain customer-specific cost elements within the new scheme. This is intended to preserve locational signals and ensure fair cost allocation, particularly in cases where investments benefit only specific customers.

Distribution Grid Not Included in RMEs proposal

The proposed scheme does not currently apply to the distribution grid. One reason is that introducing connection fees in the distribution grid could incentivise connections in remote areas, potentially resulting in disproportionate costs for other distribution grid customers.
Nevertheless, RME highlights significant potential for administrative simplification in this segment, given that most grid connections occur within the distribution network.

Who Will Be Affected and How?

Under the current framework, actors located in areas with well-developed grid infrastructure enjoy a de facto advantage, as their connection requests rarely trigger new investments—and thus, they are not subject to construction contributions. In contrast, actors in rural or less-developed areas are more likely to prompt grid investments, resulting in additional costs. This creates an unfortunate geographic disparity that may lead to unequal treatment.

RME’s proposal for a standardised connection fee aims to promote a more equitable cost distribution and stimulate grid development across the country.

High-consumption actors—such as data centres and energy-intensive industries—will, under the new model, bear a larger share of the costs, as the fee is calculated based on requested capacity.

Overall, the proposed regulation offers a more objective and transparent cost allocation mechanism, based on actual consumption and capacity needs rather than arbitrary factors such as location or the timing of connection requests.

Alignment with the Renewable Energy Directive

The Renewable Energy Directive aims to increase the share of renewable energy, reduce emissions, and enhance energy security within the EU. Achieving higher levels of renewable generation necessitates a predictable regulatory framework for development and grid connection. RMEs new proposal contributes to this objective by introducing a more standardized and transparent system for connection to the regional and transmission grids. The proposed model also ensures a fair allocation of costs, thereby strengthening incentives for grid expansion in line with the Directive’s overarching goals.