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The EU Agency for the Cooperation of Energy Regulators (ACER) publishes its first report reviewing the methodologies for electricity distribution tariffs in Europe.
The electricity networks are the backbone of the energy systems. Tariffs are used to recover the network operators costs and to support overall system efficiency by providing the right incentives to the operators and users of the network. As Europe strives to decarbonise its energy system, (with a strong focus on electrification, increased renewables and a more active role of network users) how distribution tariffs are designed can become increasingly important, but also increasingly complex.
The report provides detailed data across EU Member States on what costs are recovered via the distribution tariffs and how the tariffs are designed. It also touches upon how some energy transition activities (e.g. Power-to-X facilities, Electric Vehicle (EV) public charging stations and energy communities) are treated in the tariff methodologies, which in turn may play a role in their uptake.
The ACER report provides various recommendations across 3 broad areas:
- strengthening the national regulator’s role and stakeholder involvement in electricity distribution tariff setting
- improving the transparency, comparability and predictability of distribution tariffs
- ensuring cost-reflectivity and avoiding distortive effects
What’s next?
ACER will hold a webinar on Friday, 19 March on its electricity network tariffs report.
