2. Simple Combined Billing

Combined Billing in a 

Supplier Centric Model 

Different models 

Arnstein Flaskerud

Definition – Combined Billing in a Supplier Centric Model 

- the DSO invoice the customer via the supplier 

1. Joint Billing - Combined settlement and combined billing 

2. Simple Combined Billing - Separate settlement and combined billing 

3. Telecom Model - Separate settlement and grid fee handled as ‘cost of goods sold’

Combined Billing – main challenges 

•How to gain simplicity for both the customer, supplier and DSO 

•Gaining overall cost savings for supplier and DSO 

•Grid fee handling 

•Taxes handling 

• Energy taxes 

• VAT 

•How to organize contractual issues and what to be stipulated in legislation and 

standard contracts. 

•Increased risk of non-payment for the supplier (Grid fee, energy taxes and vat) 

•Risk of non-payment for the DSO

Definition – Combined Billing 


1 – Joint Billing 

Billing prosess DSO Supplier 

Collecting data 

Settlement 

Combined settlement 

and combined billing 

• The supplier settles the grid fee, 

power cost and public fees 

• The DSO invoice the supplier 

• The supplier invoice the customer 

for the grid fee, power cost and 

public fees 

Bill proposal 

Invoicing 

B2B Bill 

Payment 

Payment 

collection

1 – Joint Billing 

Major Strengths 

• Simplicity for the customer 

• Clear roles between the supplier and DSO 

• Simplicity for the DSO regarding customer 

dialog, systems and billing process. 

Major Weaknesses 

• The supplier must run complex sector adapted 

systems 

• Complex process exchanges between DSO and 

supplier during the billing process 

• The suppliers risk related to non-payment 

increases significantly 

• DSO will require a full payment guarantee from 

the supplier 

Major Opportunities 

• Restructuring of the downstream energy sector 

• Reduced number of DSOs and suppliers 

• Simpler contract regime with only one customer 

contract 

Major Threats 

• Requires that the supplier takes over the 

responsibility for the Energy taxes 

• Requires harmonization of the grid fees and 

invoice periods 

• Requires standardized and harmonized 

communication between the actors 

• Requires that the parties’ rights and obligations 

become stipulated in legislation.



2 - Simple Combined Billing 



Settlement 

Separate settlement and 

combined billing 

• The DSO settles the grid fee 

• Public fees can be handled by any part 

• The supplier settles the power cost 

• Two contracts – customer/DSO and 

customer/supplier 

• The supplier buys the grid fee claim 

Invoicing 

B2B Bill 

Payment 

• The supplier invoice the customer for the 

grid fee, power cost and public fees 

Payment 

collection

2 - Simple Combined Billing 



• Simplicity for the supplier since the DSO 

handles the grid fee settlement 

• The supplier can run standard non sector 

systems for all customer processes and billing 

processes. 

• Clear Simple process exchange between DSO 

and supplier during the billing process 


• The DSO must handle the grid fee settlement 

and send b2b invoice to the supplier 




the supplier 

• Not deductible losses regarding vat connected 

to grid fee and taxes 

• Not deductible losses regarding energy taxes 


• Flexibility regarding roles between the supplier 

and DSO 

• Flexibility regarding who to be responsible for the 

Energy taxes 


contract 

Major Threats 







3. Telecom Model 

(Integrated Combined Billing) 



Settlement 

Separate settlement and grid 

fee as ‘cost of goods sold’ 

• One contract - between the 

customer and the supplier 

• The DSO invoice the grid fee as a 

‘cost of goods sold’ (wholesale) 

• The supplier invoice the customer 

for the grid fee, power cost and 

public fees. 

Invoicing 

B2B Bill 

Payment 

• Grid fee can still be specified at the 

customer bill. 

Payment 

collection

3. Telecom Model 

(Integrated Combined Billing) 



• Simplicity for the supplier since grid fee 

settlement 

• The supplier can run standard non sector 

systems for all customer processes and billing 

processes. 

• Clear Simple billing process 

• Simplicity for the DSO since the customer 

handling reduces from thousands of end users 

to a simpler B2B relationship towards the 

supplier 

• Deductible losses for vat regarding grid fee and 

taxes 



contract 

• Flexibility regarding displaying the grid fee on the 

bill 

• Deductible losses regarding energy taxes 


• The DSO must handle the grid fee settlement 

and send b2b invoice to the supplier 




the supplier 

Major Threats 

• Requires that the supplier takes over the 

responsibility for the Energy taxes 

• Requires harmonization of the grid fee periods 

and invoice periods 





HUB

Data exchange – HUB-example 



Metering data 

Settlement 

HUB 

Invoicing 

B2B Bill 

B2B Bill 

Payment 

collection 

Payment

HUB – benefits for DSO and supplier 

• Single point of data exchange regarding all customer processes (national or Nordic) 

• Single point of contact regarding the billing process 

• Standardized data exchange formats 

• Central storage of data (national or Nordic) 

• Flexible, cost efficient end robust solution 

• Simplified reporting towards government 

• Standardized quality control

Data excahange 

Customers life circle 

DSO 

DSO 

DSO 

DSO 

New customer 

Change of 

customerdata 

Swiching 

Moving 

Billing 

All messages: 

• Customer data 

• Metering data 

• Aggregated 

consumption 

• Swiching data 

• Taxes clarification 

• Elsert clarification 

HUB 

Supplier 

Supplier 

Supplier 

Supplier

2. Simple Combined Billing

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