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Upgrading the high-voltage grid results in higher tariffs for large-scale users

Large-scale users of electricity in 2022 will pay more for the transmission of electricity by transmission system operator (TSO) TenneT. The most important reason for this increase is the fact that, through 2023, TenneT will have to incur additional operational costs for the upgrade of the high-voltage grid as part of the energy transition.

The tariffs in 2022 for large-scale users that are connected to the extra-high voltage grid (EHS grid) will increase by 9%. For the high-voltage grid (HS grid), the tariffs will increase by 15%. For 2023, a further increase in the tariffs is expected. These are some of the conclusions in the tariff decision for TenneT that the Netherlands Authority for Consumers and Markets (ACM) published today.

ACM has examined whether it is possible to spread the tariff increases for 2022 and 2023 over those years as much as possible. ACM can do so by using the auction revenues that TenneT receives for auctioning off cross-border capacity for mitigating the tariffs in 2023 instead of 2022. In that context, ACM asked the parties involved in October 2021 to comment on two scenarios. Additional information that ACM has since received from TenneT reveals that the operational costs that TenneT may pay using the auction revenues are higher than expected. As a result, the alternative scenario is not possible because there will be no auction revenues left for mitigating the tariffs.

Next to the additional operational costs for the upgrade of the high-voltage grid, TenneT is also allowed to charge the costs in connection with its statutory duties as system operator of the off-shore grid. The Dutch Ministry of Economic Affairs and Climate Policy (EZK) grants TenneT a subsidy for the first phase of the off-shore grid. As the Ministry has yet to take a decision regarding a subsidy for the second phase of the off-shore grid (the plots after ‘Hollandse Kust West’), TenneT (as the system operator of the off-shore grid) is allowed under the Dutch Electricity Act to charge the system operator of the high-voltage grid the costs in connection with the second phase.

Small-scale users and consumers are not directly connected to TenneT’s grid, but receive their electricity through the distribution system operators (DSOs). The DSOs pay TenneT for the national transmission of electricity. They charge consumers and small-scale users these costs together with the costs that they incur themselves. ACM on November 30, 2021, also published the tariffs for the DSOs.

See also

30-11-2021 Energy distribution tariffs increase, on average, by 6 euros per year per household
30-11-2021 2022 Tariff decision for TenneT (in Dutch)
30-11-2021 2022 Revenue decision for TenneT regarding the off-shore grid (in Dutch)
30-11-2021 Addendum to the competence agreement between ACM and TenneT (in Dutch)