NIE Networks derives its revenue principally through charges for use of the distribution system levied on electricity suppliers and charges for use of the transmission system levied on SONI. Our network charges are approximately 20-25% of the final electricity bill. This percentage will vary each year depending on electricity wholesale prices and other costs which make up the final bill.
Under the regulatory framework, the costs associated with network investment are paid for by customers over 40 years reflecting the long term value of network assets.
Distribution Loss Adjustment Factors (DLAFs) Methodology
This paper describes the methodology applied by NIE Networks to calculate Distribution Loss Adjustment Factors (DLAFs). The DLAFs are published in Schedule B of the Statement of charges for use of the distribution system:
Statement of charges for use of the distribution system (DUoS)
Transmission Services Charge
Public Service Obligation