Pricing under the RCP

Nicolas Vodoz Updated by Nicolas Vodoz

In the context of a RCP, the owner (or the condominium association) becomes the electricity supplier for the residents of the building, assuming the responsibilities typically assigned to the distribution network operator (DNO). This includes investment, energy supply, maintenance of installations, 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 ensure the profitability of the investments made by the owner while protecting tenants from potential abuses. Within a condominium association, 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 of electricity drawn from the grid include all elements billed by the DNO to the RCP: energy, network usage, taxes, and meter subscription fees.

These costs are billed to consumers identically, without markup for the owner.

However, within a microgrid where several buildings are connected to the same connection point to the grid, the owner establishes a tariff 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 using the actual cost method for solar electricity, as explained below.

2. Solar electricity

The costs of electricity produced internally are covered by the sale of photovoltaic electricity to consumers and by the resale of surplus injected into the DNO. The regulation offers two methods to set the tariff for solar electricity sold to consumers who are RCP members:

  1. The flat rate: The tariff 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 an RCP member. In this case, the tariff does not need to be justified to tenants.
  2. The actual costs: The tariff is calculated from the actual costs of electricity production after deducting revenues from the sale of surplus. 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 does not have the right to charge more.

The actual costs include:

  • The depreciation of relevant investments (photovoltaic panels, inverters, wiring up to the electrical panel, installation costs including assembly and scaffolding)
  • Interest on the depreciation, calculated based on 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 costs, etc.)

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

3. Administrative fees

Administrative fees include all costs related to the management of the RCP, such as meter reading and data transmission, bill issuance, billing consumers, and processing payments, as well as paying the bill for network withdrawal.

With a service provider like Climkit, the administrative costs for metering and billing are billed directly to consumers. Climkit offers meter reading and billing generation (3.50 CHF/month) and, optionally, billing and payments (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 similarly to those for production installations. The lifespan of electronic meters is 10 to 15 years. The annual costs of the meters are calculated using a constant annuity over the depreciation period, plus interest defined by the WACC of production.

If the installation of a meter costs between 200 and 250 CHF for a lifespan of 10 years, adding 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 increase costs but rather increases their investment without affecting their return.

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

References:

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

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