Billing in the context of RCP

Nicolas Vodoz Updated by Nicolas Vodoz

Within the scope of an RCP, the Owner (or the SME) becomes the electricity supplier for building Residents, assuming responsibilities usually allocated 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 Swiss Energy Ordinance (OEne) specifies how to calculate the prices charged to consumers. The objective is to make the investments made by the Owner profitable while protecting tenants from potential abuses. In the context of an SME, co-owners are free to apply whatever 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 billed by the DSO to the RCP: energy, grid usage, taxes, and the Input meter subscription.

These costs are recharged 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 investments and maintenance costs related to the building connections (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 for internally produced electricity are covered by the sale of photovoltaic electricity to consumers and by the resale of the surplus fed into the DSO grid. The regulation offers two methods for setting the tariff for solar electricity sold to member consumers of the RCP:

  1. The lump sum: The tariff is a maximum of 80% of the standard electricity tariff (without peak/off-peak time consideration) of the DSO, which the consumer would pay if they were not an RCP member. In this case, the tariff does not need to be justified to the tenants.
  2. Effective costs: The tariff is calculated based on the effective costs of electricity production after deducting revenue 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 entitled to charge more.

Effective costs include:

  • Amortization of relevant investments (photovoltaic panels, inverters, wiring up to the electrical panel, installation costs, including assembly and scaffolding)
  • Interest on depreciation, calculated according to the WACC (weighted average cost of capital) for 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 inspections, installation cleaning, administrative expenses, etc.)

Climkit recommends the lump sum method for obvious simplification reasons. 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 Consumer billing, collection processing, and 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 like those for production installations. 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 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 return.

As part of its billing service, Climkit offers to collect the meter subscription directly 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.

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