System operators expect tariff increases as a result of the high energy prices and investments in connection with the energy transition

System operators expect the tariffs that they are allowed to charge households in 2023 to increase by, on average, 10 euros per month. Large-scale users, too, are expected to pay more in 2023 for the transmission of electricity. This follows from the tariff proposals that the distribution system operators (DSOs) and transmission system operator TenneT (operator of the national high-voltage grid) have submitted to the Netherlands Authority for Consumers and Markets (ACM). ACM will assess the tariff proposals of the system operators, and will announce the definitive tariffs by the end of November.

Households and businesses are not able to choose from which system operator they take out their transmission services. That is why ACM each year sets the tariffs for all system operators. ACM makes sure that system operators have sufficient revenues for investments that are necessary for realizing the energy transition, and, at the same time, ensures that tariffs are not unreasonably high.

System operators need to make major investments for upgrading the grid. In order to meet the climate targets, many businesses switch from fossil fuels to electricity generated by wind and solar parks. Households increasingly own solar panels, heat pumps, and electric cars. This means that more and more electricity needs to be transmitted. In addition, system operators incur more and more costs caused by grid losses because of the high energy prices. Energy losses occur when transmitting electricity and when converting, for example, high-voltage electricity to low-voltage electricity. System operators are responsible for the purchase of electricity that is lost during transmission, which are called grid losses. ACM had previously announced that, in the tariffs for 2023, it will give DSOs an advance for the high costs connected to grid losses in 2022.

Tariffs of TenneT

Businesses that are directly connected to TenneT’s extra-high voltage grid (EHS grid) will have to pay, on average, 84% more in 2023 for the transmission of their electricity. For businesses that are connected to the high-voltage grid (HS grid), the transmission costs go up by 51%. ACM had previously announced that the volume correction scheme (VCR) for large-scale users will be left unchanged in 2023 for the duration of a study. The scheme offers large-scale users that continuously consume large volumes of electricity a discount on their transmission tariffs. ACM will have a study carried out into whether a discount for large-scale users is necessary and proportional. On the basis of that study, ACM may decide that the discount will be discontinued starting in 2024.

Tariffs of DSOs

The distribution of electricity to consumers and small-scale users is carried out by the DSOs. In the electricity bills for consumers, DSOs charge consumers their costs and the fee that they need to pay TenneT for the national transmission of electricity. In 2022, households paid, on average, 397 euros in transmission costs, which, according to the system operators’ proposals, will go up to 513 euros in 2023 (including VAT). System operators will then only be allowed to charge up to 73 euros for the energy meter.

System operators expect tariff increases as a result of the high energy prices and investments in connection with the energy transition

Tariffs of TenneT

Tariffs of DSOs

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