Further network and energy tariff developments

Our study shows the possibilities for further developing the tariff setting principles in the electricity sector in view of the changes in electricity supply caused by the energy transition and digitalisation. It contains proposals to take into account electricity production near end consumers in distribution networks whilst considering cost reflexivity. Other analyses concern the structure and time variability of tariffs as well as the cost allocation method. The study shows that network operators’ payments to producers give incentives to set up production plants where they relieve the electricity network. These payments are independent of the purchasing of electricity and therefore independent of transactions. Prominent approaches in the political debate, which provide for reduced network fees for locally purchased electricity based on the purchasing of electricity (dependent on transactions), on the other hand, are less cost reflexive.