Historically, network tariffs job has been to finance the maintenance, upgrade and operation of the electricity grid. However, as the energy transition unfolds, tariffs are starting to have another job as an additional instrument for DSOs (distribution system operators, also known as distribution network operators) to operate the electricity grid by influencing consumers’ consumption. At Delta-EE, we see three ways for DSOs to untap the flexibility potential from customers, with tariffs being one of them. The additional two refer to participating in flexibility markets or direct control of customers assets.
This process is being reflected in the revision of residential network use of system charges in different countries. Part of this transition looks at fine-tuning established tariff schemes as fixed or a static time-of-use (where electricity retailers are charged differently at different times of the day to use the distribution network).