Pricing under the RCP

Nicolas Vodoz Updated by Nicolas Vodoz

In the context of a RCP, the owner (or the PPE) becomes the electricity supplier for the residents of the building, assuming the responsibilities typically held by the distribution network operator (DNO). This includes investment, energy supply, maintenance of facilities, as well as metering and billing services for consumption.

Article 16 of the Energy Ordinance (OEne) specifies how to calculate the prices charged to consumers. The goal is to recoup the investments made by the owner while protecting tenants from potential abuses. Within a PPE framework, co-owners are free to apply the rates they wish.

Here are the 4 cost elements to be considered in pricing:

1. Electricity drawn from the grid

The costs of electricity drawn from the grid include all items billed by the DNO to the RCP: energy, network usage, taxes, and meter connection fees.

These costs are billed to consumers identically, with no margin for the owner.

However, in the context of a microgrid where multiple buildings are connected to the same grid connection point, the owner sets a rate to cover their investments as well as the maintenance costs related to the connection of the buildings (wiring, transformers, etc.). In this case, the price charged to consumers is determined according to the effective cost method for solar electricity, as explained below.

2. Solar electricity

The costs of internally produced electricity are covered by the sale of photovoltaic electricity to consumers and by the resale of the surplus injected to the DNO. The regulations offer two methods to set the tariff for solar electricity sold to RCP member consumers:

  1. The flat rate: The rate is a maximum of 80% of the standard electricity tariff (without peak/off-peak hours) from the DNO, which the consumer would pay if they were not a member of the RCP. In this case, the rate does not need to be justified to the tenants.
  2. The effective costs: The rate is calculated based on the effective production costs of electricity after deducting the income from the sale of surplus. If the calculated rate is lower than the standard product rate, the difference is shared between the owner and the tenant. If the calculated price is higher than the standard rate, the rate must equal the standard rate, as the owner is not permitted to charge more.

Effective costs include:

  • Amortization of relevant investments (photovoltaic panels, inverters, wiring to the electrical panel, installation costs, including assembly and scaffolding)
  • Interest on amortization, calculated according to the WACC (Weighted Average Cost of Capital) of production (set at 3.98% for 2025)
  • Operating and maintenance costs (maintenance, repair and replacement of the installation, monitoring and surveillance of the installation, periodic maintenance, OIBT checks, cleaning of the installation, administrative expenses, etc.)

Climkit recommends the flat rate method for obvious simplification reasons. Once this method is selected by the owner, Climkit updates the solar rate annually based on changes in local DNO rates.

3. Administrative fees

Administrative fees include all costs related to the management of the RCP, such as reading and transmitting meter data, establishing accounts, billing consumers, and processing collections, as well as paying the grid draw fee.

With a provider like Climkit, administrative costs for metering and billing are charged directly to consumers. Climkit offers meter reading and account generation (3.50 CHF/month) and, optionally, billing and collections (6.50 CHF/month). See the details of Climkit services for more information.

4. Meter subscription

When the owner finances the meters, these investments must be treated like those of production installations. The lifetime of electronic meters is 10 to 15 years. The annual costs of meters are calculated through a constant annuity over the amortization period, plus the interest defined by the production WACC.

If the installation of a meter costs between 200 and 250 CHF for a lifespan of 10 years and adds 4% interest, the owner can charge a "meter subscription" of 2.00 to 2.50 CHF per month per meter from consumers. Therefore, the purchase of meters by the owner does not raise costs but rather their investment, without affecting their return.

Climkit offers, in its billing service, to collect the meter subscription directly from consumers on behalf of the owner.

See Billing Rates

References:

  • Energy Ordinance (OEne) of 01/02/2024
  • Self-consumption of electricity, David Sifonios, Proprietors Services Publishing SA, 2023.

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