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Network charges.

Consider network use separately from energy procurement.

Understand the term ↗
ENERGY GLOSSARY / ALL TERMS ↗

Markets and prices

What do network charges mean?

Network charges pay for use of the electricity or gas network. They must be distinguished from the cost of energy procurement itself. Published electricity network charges depend on factors including the network area and the conditions of withdrawal.

Changing supplier does not automatically change the local network. A cheaper energy offer must therefore not be assumed, without checking, to deliver equivalent savings across all bill components. Metering and statutory price components also need separate assessment.

AT A GLANCE

  1. EnergyProcurement and sales
  2. NetworkTransmission and distribution
  3. Other costsCheck separately
NeoBid’s own overview.

PROPERTY PRACTICE

What does this mean for your portfolio?

For properties in different cities, calculate costs per supply point. Record the price schedule version, network level and relevant capacity data. This helps explain why sites with similar annual consumption have different total costs. A current energy price indication does not replace a reliable total-cost calculation.

An example.

Our own comparison example: two office buildings each consume 300 MWh. A supplier offers the same energy price. Different local network charges and withdrawal data may nevertheless produce different annual bills. Compare the energy component and other components separately.

No current network charge rates or general savings percentages are stated here. The applicable published price schedules and contract terms are decisive.

WHAT MATTERS

Three questions for your portfolio.

01

Which network area and price schedule apply?

02

Are energy, capacity and metering costs recorded separately?

03

Which components can procurement actually influence?

Make the distinction clear

Network charges are not freely negotiated supplier discounts. Measures affecting load or connection may be relevant but require their own technical and economic assessment.

Sources reviewed: 18 September 2026 · Editorial team: NeoBid

Federal Network Agency · Network charges

Examples and diagrams are schematic. Their application depends on your data and contract terms.

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35 terms

Markets and prices

Baseload

In electricity trading, baseload describes a standardised profile with constant power throughout the defined product period.

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Markets and prices

Capacity charge

A capacity charge prices the power demand relevant for billing, often in euros per kilowatt per year.

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Property practice

Communal electricity

Communal electricity is a common term for electricity used by shared areas and systems within a building.

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Data and metering

Energy supplier

The energy supplier sells and supplies energy under a supply contract.

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Procurement

Fixed price

A fixed price establishes a defined price for an agreed period.

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Markets and prices

Forward market and forward price curve

Products for future periods are traded on the forward market.

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Procurement

Full supply

Full supply is a model in which the supplier covers agreed energy demand and takes on key procurement and settlement tasks.

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Data and metering

Gas conversion factor

The gas conversion factor is a dimensionless factor used to convert measured gas volume from operating conditions to the specified standard conditions.

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Sustainability

Green electricity and additionality

Green electricity describes electricity products with agreed renewable origin characteristics.

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Data and metering

Gross calorific value

Gross calorific value describes a fuel’s energy content under defined conditions and includes heat recoverable when water vapour condenses.

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Green electricity and evidence

Guarantee of origin

A guarantee of origin documents the renewable origin of a quantity of electricity.

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Data and metering

kW, kWh and MWh

The kilowatt (kW) is a unit of power.

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Data and metering

Load profile

A load profile describes how energy demand is distributed over time.

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Data and metering

Market location

A market location is a place in the energy market where energy is generated or consumed.

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Markets and prices

Merit order

The merit order describes a supply ranking ordered by costs or bid prices.

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Data and metering

Meter number

The meter number identifies a specific metering device.

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Data and metering

Metering location

A metering location is the place where energy is measured.

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Data and metering

Metering operator

The metering operator is responsible for operating the metering point.

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Markets and prices

Network charges

Network charges pay for use of the electricity or gas network.

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Data and metering

Network operator

The network operator operates the local energy network and enables energy transmission or distribution within its area of responsibility.

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Markets and prices

Peakload

Peakload describes a standardised electricity trading profile covering a defined subset of hours within a product period.

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Procurement

Power purchase agreement (PPA)

A power purchase agreement is an individually negotiated electricity offtake contract.

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Procurement

Price guarantee

A price guarantee is a contractual commitment to keep specified price components stable for a defined period.

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Property practice

Property changes and vacancy

Property changes or vacancy may alter a supply point’s use, contracting party and consumption.

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Procurement

Residual electricity demand

Residual electricity demand is the electricity requirement that must be covered in addition to defined self-supply or allocated deliveries.

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Data and metering

RLM – interval demand metering

RLM refers to recording power demand at successive time intervals.

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Data and metering

SLP – standard load profile

A standard load profile is a typical consumption pattern over time.

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Procurement

Spot market and indexed procurement

Energy is traded at short notice on the spot market.

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Markets and prices

Standing charge

The standing charge is a fixed, time-based tariff component, such as an amount per month or year.

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Property practice

Supplier switching and notice periods

Switching supplier replaces the energy provider at a supply point.

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Procurement

Supply point aggregation

Aggregation combines several supply points in a single procurement process.

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Property practice

Tenant electricity

Tenant electricity describes a supply model for building occupiers, often incorporating locally generated solar electricity.

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Procurement

Tranche procurement

Tranche procurement spreads price fixing for the expected demand across partial volumes and several purchasing dates.

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Markets and prices

Unit rate

The unit rate is a price related to the amount of energy consumed, for example in cents per kilowatt-hour.

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Procurement

Volume tolerance and excess or shortfall

A volume tolerance defines a contractually agreed range around a reference volume.

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YOUR NEXT STEP

Let’s start
a conversation.

In our first meeting, we discuss your portfolio, upcoming contract deadlines and objectives. Together, we identify useful documents and next steps. You do not need a complete dataset to get started.

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