GEODE Recommendations on Electricity Distribution Tariff Structures

GEODE recommendations on Electricity Distribution Tariff Structures are here

Consumer electricity distribution tariffs can be an efficient tool for increasing the efficiency of the distribution grid on a long-term basis, as acknowledged by the European Commission in its recently proposed Regulation to improve the Union’s Electricity Market Design.

Through our latest position paper, we present several principals to increase the efficiency of electricity distribution tariffs as means of supporting EU energy policy and goals and address the structure of cost reflective electricity distribution tariffs for households and SME consumers.

Cost reflective electricity distribution tariffs can provide great benefits for the electricity system and consumers. They can:

• Reduce the need for grid investments that otherwise would increase distribution costs

• Create incentives for consumer behaviour that reduces peak loads by investing in

technology such as batteries, enabling active consumers

• Create incentives for smart EV charging

• Make it possible for consumers to reduce their electricity costs

We thank GEODE experts of GEODE Working Group Regulation, led by Per Everhill, Public Affairs Manager at Tekniska Verken i Linköping AB, for their work.

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