On 18 May 2000, the Law for the Protection of Electricity Generation Using Combined Heat and Power (KWK-G) came into force for the first time. This law obliges system operators to recompense energy from existing CHP plants and purchase it under certain conditions. The law also regulates the promotion of new construction and expansion measures for the heat grid by obliging the system operators to make additional payments for the implementation of projects concerning the heat grid.
The transmission system operators (TSOs) carry out a financial balancing of the load across the recompensed CHP surcharges amongst each other, which evens out the payments from the CHP law at the federal level. The system operators can shift the cost burdens from the CHP law onto the grid utilisation fees.