Experience of connection fees models in Finland and Sweden related to efficiency and regulation policies

This paper reviews the different models for connection fees in Finland and Sweden and the experience of their application in the Vattenfall electricity distribution companies. The design of the connection fees model has considerable impact on customer satisfaction and what´s more the efficiency in the connection process in the distribution company. The paper describes the possibilities opened as a result of launching the connection fee zone-model based on fixed price in each zone for each connection size. The great importance of the regulator´s confirmation of the model and its application is discussed on the basis of experience in Finland and Sweden.