Billing in the context of RCP

Nicolas Vodoz Updated by Nicolas Vodoz

Within the scope of an RCP, the owner (or the condominium association) becomes the electricity supplier for the building's residents, assuming the responsibilities usually assigned to the Distribution system operator (DSO). This includes investment, energy supply, installation maintenance, as well as metering and consumption billing services.

Article 16 of the Energy Ordinance (OEne) specifies how to calculate the prices billed to consumers. The objective is to achieve a return on the owner's investments while protecting tenants from potential abuse. In the context of a condominium association, co-owners are free to apply the tariffs they wish.

Here are the 4 cost elements to consider in the tariff setting:

1. Electricity drawn from the grid

The costs for electricity drawn from the grid include all items billed by the DSO to the RCP: energy, grid usage, taxes, and the main meter subscription fee.

These costs are recharged to consumers at cost, without any margin for the owner.

However, in the case of a microgrid where multiple buildings are connected to the same grid connection point, the owner establishes a tariff to cover their investments and maintenance costs related to the building connections (cabling, transformers, etc.). In this case, the price charged to consumers is determined according to the actual 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 selling the surplus fed back to the DSO. Regulation offers two methods for setting the tariff for solar electricity sold to members of the RCP:

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

Actual costs include:

  • Amortization of relevant investments (photovoltaic panels, inverters, cabling up to the electrical panel, installation costs, including assembly and scaffolding)
  • Interest on amortization, calculated according to the WACC (weighted average cost of capital) for production (set at 3.98% for 2025)
  • Operating and maintenance costs (system maintenance, repair and replacement, system monitoring and surveillance, periodic maintenance, OIBT checks, system cleaning, administrative fees, etc.)

Climkit recommends the lump sum method for obvious reasons of simplification. Once this method is selected by the owner, Climkit updates the solar tariff annually based on changes in local DSO tariffs.

3. Administrative fees

Administrative fees include all costs related to RCP management, such as meter data reading and transmission, statement generation, consumer billing and collection processing, as well as payment of the grid draw invoice.

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

4. Meter subscription

When the owner finances the meters, these investments must be treated the same as those for production installations. The lifespan of electronic meters is 10 to 15 years. The annual meter costs are calculated via a constant annuity over the amortization period, to which are added the interest defined by the production WACC.

If the installation of a meter costs between CHF 200 and CHF 250 for a 10-year lifespan and 4% interest is added, the owner can collect a "meter subscription" of CHF 2.00 to CHF 2.50 per month per meter from consumers. Consequently, the purchase of meters by the owner does not increase costs but rather their investment, without altering their yield.

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

See Billing rates

References:

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

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