Tariff Elements
Understanding the components of electricity pricing
Electricity pricing consists of multiple tariff elements from different organizations. These elements combine to form the total price that end users pay for electricity.
Element Structure
Each tariff contains multiple components that represent different charges, coming from various organizations in the electricity value chain.
DSO Elements
Grid costs from Distribution System Operators:
- Fixed charges (monthly/yearly subscription fees)
- Capacity-based charges (based on fuse size/connection capacity)
- Usage-based charges (per kWh consumed)
- Time-of-use variations (different prices for day/night)
TSO Elements
Transmission costs from Transmission System Operators:
- System charges for high-voltage grid maintenance
- Balancing costs for grid stability
- Capacity fees for transmission infrastructure
Retailer Elements
Energy costs from electricity retailers:
- Energy procurement costs
- Retailer markup/operating costs
- Risk premiums (for fixed contracts)
- Spot market pass-through charges (for variable contracts)
Tax Elements
Government charges:
- Value Added Tax (VAT)
- Electricity taxes
- Renewable energy surcharges
- Environmental fees
Authority Elements
Regulatory charges:
- Renewable subsidy fees
- Grid development charges
- Energy efficiency program funding
Other Elements
Miscellaneous charges:
- Special local fees
- Municipal charges
- Specialized program funding
Element Types by Charging Model
Tariff elements use different calculation methods depending on their purpose:
Elements in API Responses
Price elements appear in API responses with identifiers, costs, and organization information:
Detail Level Control
Control the granularity of elements in responses using the detail
parameter:
Returns complete breakdown of all price components:
Use: detail=full
(default)
Returns complete breakdown of all price components:
Use: detail=full
(default)
Aggregates components by organization type:
Use: detail=semi
Returns only the total price:
Use: detail=summarized
VAT Handling
The Prezio API offers flexible VAT handling using the vat
parameter:
Excluded
All prices excluding VAT (default behavior)
Included
VAT included in each price component
Separated
VAT shown as a separate component
VAT rates vary by country and sometimes by element type. The Prezio API automatically applies the correct VAT rates based on location and element classification.
Usage in Applications
When displaying electricity costs to end users, consider presenting key component groups (grid, energy, taxes) separately to help users understand their bill structure.
For charts and visualizations, the semi-detailed response format is often ideal, showing the breakdown between major cost categories while avoiding overwhelming detail.