Energy Netherlands views the research ‘Exploration of Alternative Network Tariff System for Small Consumers’ by Berenschot as a useful first step towards a discussion on the fair allocation of network costs. We support the encouragement of efficient network use and a better distribution of the costs of the electricity network. Energy Netherlands is eager to engage in conversations about this with the Netherlands Authority for Consumers and Markets (ACM) and consumer organizations.
Points of Attention
Following the report commissioned by Network Operators Netherlands, we primarily emphasize the need for clarity, effectiveness, and the complexity of implementing the proposed alternative. The report concludes that a kWh rate varying by hour and season is the most desirable solution. Energy Netherlands understands that from a theoretical analysis, this solution aligns well with the objectives set by the network operators, but notes that it is indeed the most complex variant. For the further development of an alternative tariff system for small consumers, we provide the following key points:
- Do not overestimate the (low) price elasticity of households. The willingness to change behavior should not be overestimated. Most households will not or will only limitedly adjust their behavior. Special attention should be given to the actionable perspective of the most vulnerable households, who often cannot significantly shift their electricity consumption.
- Ensure understandable and relatable tariffs. Complex arrangements can lead to confusion, misunderstanding, and consequently reduced participation. Therefore, weigh the complexity of the tariff structure heavily in the research into alternatives.
- Keep an eye on feasibility. The electricity sector is undergoing many changes, which places significant pressure on the implementation of various measures. Additionally, there is not always consideration of how measures or price incentives interact with one another. We request attention for the feasibility of alternative network tariffs for both the network operators, metering companies, and energy suppliers.
Energy Netherlands is eager to contribute its knowledge and experience in the small consumer market to the follow-up process.
