Synthetic valuation method
The term synthetic evaluation method comes from the Electricity Supply Ordinance of the Swiss Electricity Commission ( ElCom ). Article 13 Paragraph 4 of the Electricity Supply Ordinance provides, in the event that the original acquisition or production costs for existing systems can no longer be determined by way of exception, that these are to be calculated using the so-called synthetic method (also widespread synthetic network assessment). As part of this method, the replacement prices are transparently calculated back to the time of purchase or manufacture using appropriate, officially reported price indices.
Motivation for this method
Before there was a state-determined price index, the network operators often used the producer and import price index (PPI) for re-indexing. However, this is not representative for the distribution and transmission network, as the components that are used to create electrical systems only make up a very small proportion of the PPI or are not included in the PPI. For this reason, the PPI is not appropriate for determining the acquisition or manufacturing costs for systems in the transmission and distribution network. In order to adequately reflect price developments, it is of key importance that the index used is appropriate to the asset classes to be indexed. For this purpose, specific indices were developed for the asset classes of the Swiss electricity grid.
In cooperation with the Swiss electricity industry, a distinction was made between important asset classes in the Swiss electricity grid and their main components and their proportions identified. In addition to four installation classes for cable and overhead lines (maximum, high, medium and low voltage), a distinction is made between two substation categories (NE 2 and 4) as well as transformer stations NE 6 and pipe system routes on the medium and low voltage level. It is crucial for the electricity industry that this evaluation is carried out correctly in order to obtain the highest possible transparency with regard to the capital costs for the individual "grid levels".
example
When checking the existing systems, the local utility found that a medium-voltage overhead line had not been activated 20 years ago. In addition, the construction bill was missing. Since this is not compatible with the requirements of the modern electricity markets, the utility decided to include this system correctly in the asset accounting and to evaluate it, because electricity can still be transmitted or used with this line. These investment costs have now been assessed synthetically.
In this example, this overhead line has a replacement value of 120 currency units. Indexing back to the theoretical activation time 20 years ago results in a value of 100 currency units (WE). The devaluation to today takes place theoretically and then results in a residual value of 50 WE with an expected useful life of 40 years.
Individual evidence
- ↑ Swiss Confederation - Electricity Supply Ordinance
- ↑ Federal Statistical Office - Producer and Import Price Index ( Memento of the original from July 29, 2014 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
