Concession fee; payment

Concession fees are fees paid by energy and water supply companies for the granting of the right to use public transport routes for the laying and operation of pipelines that serve the direct supply of electricity, gas and water to end consumers in the municipal area. A supply of electricity, gas or water to final consumers within the meaning of this provision also exists if a distributor is supplied with electricity, gas or water via public transport routes and passes this energy and water on to final consumers without using such transport routes.

The amount of the respective concession fee depends on the concession agreement that the energy or water supply company concludes with the municipality or special-purpose association. This in turn is bound by legal requirements.

The concession fees for electricity and gas are agreed in cents per kilowatt hour supplied. They are part of the energy price billed by the energy supplier to the end customer. The maximum permissible amounts are set out in the "Ordinance on Concession Fees for Electricity and Gas". They essentially depend on the size of the municipality (number of inhabitants), the voltage level of the grid connection (low voltage or medium voltage) and the consumption structure (output and annual consumption). The concession fee for water is calculated in accordance with the "Ordinance on the admissibility of concession fees for companies and businesses supplying electricity, gas and water to municipalities and municipal associations". The amount of the levy for the use of the water supply network is a percentage of the supply services to all consumers in the municipal area.

• § Section 48 of the German Electricity and Gas Supply Act (Energiewirtschaftsgesetz - EnWG)
• § Section 117 of the German Electricity and Gas Supply Act (Energiewirtschaftsgesetz - EnWG)
• Ordinance on Concession Fees for Electricity and Gas (Concession Fee Ordinance - KAV)
• Order on the admissibility of concession fees paid by companies and businesses for the supply of electricity, gas and water to municipalities and associations of municipalities