Domestic grid operators have to compensate grid losses of around 3.5 TWh in the Austrian electricity transmission and distribution grid every year. Up to now, the individual grid operators were responsible itself for the procurement of the electricity needed to compensate grid losses themselves and the regulator did not fully accept recognition of the costs of procurement.
From 1 January 2011, the costs of grid losses will be calculated on a common procurement basis. The purpose of this procedure is to take advantage of the synergy potentials of buying jointly. APG assumes the function of a special balance group representative and centrally handles the procurement of electricity to compensate grid losses for all control zones in Austria for the participating grid operators in the market. With the help of this special balance group representative, the electricity procured jointly to cover grid losses is transmitted according to schedules to the balance groups for grid losses of the participating grid operators, and in this manner, it is ensured that the balance group grid losses of the grid operators are offset with respect to any balancing energy (difference in actual grid losses versus estimated quantities of the scheduled grid losses).