Network Tariffs for Transmission and Distribution

Energy networks play a key role in delivering energy to consumers, and their status of monopolistic activities make it necessary for European energy regulators to set appropriate revenues and tariffs to ensure efficient network development, security of supply, and an adequate level of service quality.

With the aim of supporting the energy transition, regulators also have to deal with new challenges under their tariff setting competences, such as facilitating the integration of renewable and low-carbon gases into the gas grid, making choices on how to treat gas assets under prospects of declining gas demand and increasing share of low carbon gases, and managing the impact on DSOs of increased distributed generation, demand-side flexibility and electrification in end uses.

These developments impacting network businesses require a re-thinking of tariff-setting methodologies by regulators, who have to strike a balance between the traditional regulatory aims of efficient, secure and high-quality energy networks and the new objectives and innovation that policymakers seek for the sector. Energy regulators need expertise in setting allowed network revenues and the associated tariffs to meet these (sometimes competing) objectives.

This tailor-made CEER training programme will help deliver energy regulators this expertise. The programme will cover the fundamental principles and future direction of tariff setting for transmission and distribution, in both electricity and gas. This will include specific relevant examples from countries across Europe. The programme will also focus on the impact of new developments and innovation on the tariff setting process for European energy regulators and how to design the new tariff structures to address these new challenges.