Source - Ei Villkorade avtal (2023)
Full title: Villkorade avtal (Conditional connection agreements)
Published: April 2023 by Ei (Energimarknadsinspektionen)
Context: Self-initiated Ei project (May 2022–April 2023) to provide regulatory guidance to DSOs and other market actors on the legal framework around villkorade avtal. Motivated by industry requests for clarity on how conditional agreements relate to EU redispatching rules.
Core legal finding
Villkorade avtal are a form of non-market-based redispatching (icke-marknadsbaserad omdirigering) under Article 13 of the Electricity Market Regulation (EU) 2019/943.
Ei’s reasoning:
- A marknadsbaserad mekanism (market-based mechanism) requires: openness to all actors on equal terms, competition-based pricing, voluntary participation, and non-discriminatory product definitions
- Villkorade avtal fail these tests: the DSO connects the next customer in queue (not competitive selection), the price is set by the DSO (not by supply and demand), and participation is limited to the connecting customer
- Therefore, villkorade avtal are icke-marknadsbaserad (non-market-based)
Art. 13(3) exceptions — when villkorade avtal may be used
Since villkorade avtal are non-market-based, they may only be used when one of four Art. 13(3) exceptions applies:
| Exception | Condition | Practical meaning |
|---|---|---|
| 1 | No market-based alternative available | DSO must show it tried to find market resources and could not |
| 2 | All market-based resources already used | Market cleared but insufficient volume; villkorade avtal as backstop |
| 3 | Too few providers for effective competition | Geographic limitation means no meaningful market can form |
| 4 | Congestion so regular/predictable that market-based redispatching would lead to strategic bidding | Predictability enables inc-dec gaming, distorting the market |
Burden of proof is on the DSO — the DSO must demonstrate that exceptions apply. This must be done in annual redispatching reports to Ei (Art. 13(4)).
Key regulatory positions
Not prohibited, but not first choice
Villkorade avtal are legal, provided Art. 13(3) exceptions are met. But market-based mechanisms are always the preferred first resort.
Cannot be permanent
Grid conditions change. DSOs must annually reassess whether market-based alternatives have become viable. If market conditions improve, villkorade avtal must be phased out for those situations.
Coexistence with markets
Where both villkorade avtal and a Flexibility Market exist, market-based activation goes first. The villkorat avtal is activated only if market volume is insufficient. This aligns exactly with E.ON’s operational model (Source - E.ON Guide villkorade avtal (2025)).
No avbrottsersättning (outage compensation)
A curtailment under a villkorat avtal is not an outage (avbrott) in the legal sense, provided voltage is maintained at the connection point. The customer’s load is reduced but not disconnected. Therefore, ellagens funktionskrav (functional requirements) and avbrottsregleringen (outage compensation rules) do not apply.
Pricing
DSOs set the price in villkorade avtal themselves. The general rule is that connection fees must cover the DSO’s reasonable costs (ellagen). For non-market-based redispatching, Art. 13 of the Regulation states that producers who “accepted a connection agreement where secure delivery of energy is not guaranteed” are not entitled to financial compensation. Ei extends this principle to consumers in the same situation. Further pricing clarification is expected from the NC DR.
Connection obligation (anslutningsplikt)
Ellagen requires DSOs to connect any customer who requests it, with limited exceptions. Before refusing, the DSO must explore all socio-economically motivated alternatives to grid reinforcement — including villkorade avtal and flexibility procurement. This means villkorade avtal can actually serve the connection obligation by enabling connections that would otherwise be delayed years.
International context (Chapter 2)
Ei’s literature review covers conditional connection approaches in:
- UK: Flexible connections well-established; OFGEM framework distinguishes firm and non-firm connections
- Netherlands: TenneT has used conditional connections for wind farms; limited at DSO level
- Germany: Einspeisemanagement (feed-in management) for renewables curtailment
- Academic literature on optimal design of conditional connections
Significance for the wiki
This is the authoritative Swedish regulatory position on villkorade avtal — directly from Ei. Key implications:
- Resolves the EU regulatory tension flagged on Villkorade Avtal: Ei explicitly classifies them as non-market-based redispatching, allowable under Art. 13(3) exceptions
- Confirms the market-first principle: aligns with the Clean Energy Package and anticipates Network Code on Demand Response Art. 51 (flexible connection agreements)
- Annual reassessment requirement: villkorade avtal are provisional tools, not permanent fixtures
- CAPEX bias context: combined with Source - Ei Flexibility in Distribution Grids (2023), shows that DSOs face both a regulatory preference for markets AND an economic incentive (CAPEX bias) that works against flexibility procurement
- No compensation obligation: clarifies a practical question that was blocking some DSOs from using villkorade avtal