The Agency for the Cooperation of Energy Regulators (ACER) published on Thursday 2 February a new report on how electricity grid tariffs are set in Europe.
These tariffs cover the costs incurred by network operators in developing and operating the electricity transmission and distribution networks.
In particular, the European agency recommends that national regulatory authorities assess the advantages and disadvantages of applying incremental or forward-looking cost models, paying particular attention to how the residual cost – the difference between authorised revenues or targets and the revenues resulting from the price signals predicted by the cost model – would be recovered from network users.
ACER also recommends collecting network costs classified by different voltage levels (extra high voltage, high voltage, medium voltage, low voltage).
The report also reiterates the European body’s previous recommendations on the frequency of setting tariff methodologies, updating tariff values, stakeholder participation, transparency and tariff structure.
See the report: https://aeur.eu/f/581 (Original version in French by Damien Genicot)