ACM supports the principle of a fairer distribution of grid costs among small-scale users

The Netherlands Authority for Consumers and Markets (ACM) welcomes the decision of system operators to have commissioned a study into a new way of distributing system operation costs among small-scale users (consumers, and small and medium-sized businesses). These are the costs that grid users must pay to the system operator for the transport of electricity as well as for the construction and operation of the grid. ACM will wait for the system operators’ concrete proposals, and, in the assessment thereof, ACM will explicitly look at comprehensibility and the consequences for households and other small-scale users.

At the moment, grid tariffs for households and other small-scale users depend on the size of the connection and thus not on usage. This means that households with connections up to 3x25 Ampère all pay the same amount for using the grid. However, as a result of the energy transition, big differences have emerged in how households use the grid. For example, households that are connected to heat networks currently pay just as much as do households that use electricity to heat their homes, whereas households connected to heat networks consume much less electricity. ACM finds it important that grid costs are distributed over all users in a fair manner. That is why ACM supports the idea of adjusting the tariff structure for small-scale users, and to have households and small-scale users pay on the basis of their grid usage and thereto-related costs. A different tariff structure can also lead to households being better rewarded if they contribute to more efficient utilization of the grid, for example, by using the grid during off-peak hours. This may relieve the pressure during peak hours in low-voltage grids, and slightly reduce the need for expansion investments by system operators. ACM looks forward to the system operators’ proposal to base the grid tariffs for small-scale users more on the costs of their grid usage.

Investments due to the energy transition

The energy transition and the electrification of the industrial sector has led to a significant increase in demand for transport capacity on the Dutch grid. All grid users (consumers and businesses) pay for grid expansions. A previous ACM projection revealed that these system operation costs will go up substantially over the next few years. Consumers pay for these costs through their energy bills. Energy suppliers pay these costs to the system operators. A study by Dutch consultancy Berenschot has revealed that the grid costs for approximately two thirds of households and other small-scale users can go down if a more efficient utilization of the grid is stimulated. Consumers that do not or cannot adjust their grid usage may see their grid costs go up.

Next steps

The system operators will incorporate Berenschot’s findings into a proposal for an alternative tariff structure, and are expected to submit this proposal to ACM in 2025. In the assessment of that proposal, ACM will keep in mind the comprehensibility for consumers, as well as the consequences of the adjustment. ACM will issue and publish a draft decision for consultation, where stakeholders are invited to submit their opinions. ACM will take into account the opinions submitted during the consultation when finalizing the decision. After the decision, the system operators will be able to start implementing the new model, and households and other small-scale users will be informed about how the tariff structure works. The new tariff structure is expected to be implemented in 2028.