Dynamic Network Tariffs - WG 2020-2

Smart meters roll-out pave the way to the clean energy transition. Smart metering devices are the cornerstone for tariff designs that serve the grid. Public smart charging and its role in integrating electric vehicles into the electricity network could also contribute for innovative tariff designs that serve the grid.

Current network tariffs often send mixed signals to market participants, not always reflecting the needs of today’s energy system. Beyond this, taxes are typically rigid – blunting relevant price signals from the market or the network.

There is no specific tariff design that could satisfy all customers or achieve all objectives at the same time. After all, a specific tariff is designed in response to questions that governments, regulators and network operators need to answer.

The working group will identify, based on feedback, best practice in terms of:

• Dynamic Tariffs best practices and National use cases;
• The opportunities of Dynamic Tariffs for the clean energy transition;
• How Dynamic Tariffs could encourage consumer’s active interaction with the grid as well as the use of flexibility services?
• Details of the network tariffs for:
  • households and SMEs - for the low to medium voltage grid at the distribution level;
  • industry, which is usually directly connected to the high voltage transmission grid
• What are the weak points in our grid that we need to address with new tariff design?
• What is the priority and what principles should be followed? Is it fairness, cost-reflectiveness, cost-recovery or simplicity?

In conclusion the report should facilitate an understanding of the effects of current practices and how new network tariffs design (dynamic) and taxation could be improved.

Conveners :