Future-proofing electricity bills in the EU

Key points

The EESC:

• recommends a holistic approach to the electricity system, supported by consolidated, reliable and near-real-time data to underpin overall efficiency.
• calls for the right signals to be sent to the markets as regards grid access charges, based on these principles:
• reflect the costs of grid operators as accurately as possible;
• introduce hourly, seasonal or dynamic tariffs, based on a local pricing;
• set the grid connection prices on the basis of the costs, while ensuring alternative mechanisms for energy access, especially for isolated and vulnerable households; promote local pricing of grid connections;
• advocates developing flexibility including through emerging concepts, such as flexible connection agreements (FCAs);
• suggests updating the management of grid connection queues, by:
• moving from the current ‘first come, first served’ principle to a more efficient approach, such as the ‘first ready, first served’ or ‘contribution to the energy strategy’ principle;
• making grid capacity reservations subject to financial constraints or cancellation clauses; except where delays result from permitting, public-infrastructure or State-aid procedures;
• introducing new prioritisation rules for grid connections, in line with the electrification goal;
• calls for an emphasis on incentive-based rules to improve TSO/DSO operational performance and financial stability;
• recommends requiring grid operators to provide the data needed for near-real-time management across the grid, including deploying smart meters throughout the European electricity grid by 2035 at the latest;
• calls for a minimum EU wide tax differential between electricity and natural gas and for electricity taxation to be reduced to a minimum at Union level, so that it remains significantly lower than taxation on fossil fuels.