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- Billing in the context of RCP
Billing in the context of RCP
Updated
by Nicolas Vodoz
In the context of an RCP, the Owner (or the HOA) becomes the building's electricity supplier, assuming responsibilities usually assigned to the Distribution System Operator (DSO). This includes investment, energy supply, facility 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 make the investments made by the Owner profitable while protecting tenants from potential abuse. Within an HOA context, co-owners are free to apply the tariffs they wish.
Here are the 4 cost elements to consider in pricing:
1. Electricity Drawn from the Grid
The costs for electricity drawn from the grid include all elements invoiced by the DSO to the RCP: energy, grid usage, taxes, and the input meter subscription fee.
These costs are passed on to consumers identically, without any margin for the Owner.
However, in the context of a microgrid where several buildings are connected to the same grid connection point, the Owner establishes a tariff to cover their investments as well as maintenance costs related to the buildings' connection (cabling, transformers, etc.). In this case, the price charged to consumers is determined based on the actual cost method for solar electricity, as explained below.
2. Solar Electricity
The costs for internally generated electricity are covered by selling photovoltaic electricity to consumers and selling the surplus fed back to the DSO. Regulations offer two methods for setting the tariff for solar electricity sold to consumers who are members of the RCP:
- The flat rate: The tariff is a maximum of 80% of the DSO's standard electricity tariff (without peak/off-peak distinction) that the consumer would pay if they were not an RCP member. In this case, the tariff does not need to be justified to tenants.
- Actual costs: The tariff is calculated based on the actual cost of electricity production after deducting income 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 equal 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 (upkeep, repair and replacement of the installation, monitoring and supervision of the installation, periodic maintenance, OIBT checks, cleaning of the installation, administrative fees, etc.)
Climkit recommends the flat rate method for obvious simplification reasons. Once this method is chosen 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-off 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 Climkit services for more information.
4. Meter Subscription
When the Owner finances the meters, these investments must be treated like production system investments. The lifespan of electronic meters is 10 to 15 years. Annual meter costs are calculated via a constant annuity over the amortization period, to which the interest defined by the production WACC is added.
If installing a meter costs between CHF 200 and 250 for a 10-year lifespan and 4% interest is added, the Owner can collect a "meter subscription" of CHF 2.00 to 2.50 per month per meter from consumers. Consequently, the Owner's purchase of meters does not increase costs, but rather their investment, without affecting their yield.
Climkit offers, within its billing service, to directly collect the meter subscription fee from consumers on behalf of the Owner.
References:
- Energy Ordinance (OEne) of 01/02/2024
- Self-consumption of electricity, David Sifonios, Propriétaires Services SA editions, 2023.