The power-sector association Eurelectric has published a detailed set of recommendations on how the EU's forthcoming rules on electricity bills should be shaped, as European Commission President Ursula von der Leyen renewed her call for accelerated electrification in this year's State of the Union address. The position paper, released on 17 September, sets out where the Commission's proposal for future-proofing electricity bills should be retained, amended or expanded to support grid modernisation, cost-competitive prices and long-term investment certainty.
EU Electrification Plan puts storage and grid reform in focus
Eurelectric Secretary General Kristian Ruby welcomed the call for accelerated electrification. "There is no doubt left that Europe must electrify, and it's positive to see von der Leyen reiterating it so firmly in her speech," Ruby said, adding that "despite these extremely complex times we're living in, the power sector is delivering a way out of fossil fuel dependence. The proof of our determination will be in the quality and speed of our actions to deliver."
Grids at the heart of the transition
Reinforcing and modernising Europe's electricity networks sits at the centre of the electrification push. Eurelectric argues that well-designed tariffs can encourage efficient grid use, support flexibility and channel investment where it is most needed, while keeping electricity affordable across the whole bill, including taxes and other non-network charges. The association cautions against treating grid capacity constraints as the new normal and wants tariffs to be aligned with efficient system operation and to provide the stable, predictable revenues required to expand European grids.
Harmonisation where it makes sense
Eurelectric's paper repeatedly stresses that harmonisation should be selective. Grids differ across member states and voltage levels, and tariffs must remain flexible enough to reflect national and, where appropriate, local circumstances. A one-size-fits-all methodology, Eurelectric warns, risks ignoring variations in network topology, customer density, investment needs and regulatory context.
At the same time, Eurelectric says, tariff design should not erect barriers to the internal electricity market or distort competition on wholesale markets. The paper points to the planned deletion of Annex B of the Inter-Transmission System Operator Compensation regulation, which currently harmonises generator charges at a low level and safeguards a minimum level playing field across Europe. Removing Annex B without a replacement, Eurelectric argues, could undermine that protection.
What to keep, change and add
Eurelectric has identified several elements of the Commission's proposal that should be retained. These include the tariff methodology principles that provide clear incentives to network users, the framework empowering national regulators and governments to manage speculative connection requests on objective and non-discriminatory criteria, and the provision to ensure that excise duties on electricity are, where necessary, reduced to at or below those applied to natural gas. The latter is seen as essential to encourage electrification and reduce Europe's dependence on imported fossil fuels.
Eurelectric urges derisking over clean energy financing gap
Among the proposed changes, Eurelectric is urging the revocation of the delegated act empowering the Commission to harmonise tariff methodologies at distribution level, arguing that this must remain a national competence. It is also calling for a clearer distinction between tariff methodology for network users and revenue regulation for distribution system operators, warning that the current text risks uneven transposition.
Special tariff regimes, the paper argues, should be kept to a minimum and only permitted where core tariff principles are respected, with state aid limited to preventing short-term surges in grid tariffs, for example following capital expenditure spikes. Eurelectric also wants new reporting obligations to be introduced only where they deliver demonstrated regulatory value and benchmarking of distribution system operators to remain within the discretion of national regulators.
Adequate remuneration frameworks
On digitalisation, Eurelectric stresses that non-wire, smart and digital solutions can improve the use of existing infrastructure but cannot substitute for structural grid reinforcement. It also recommends aligning smart meter targets with national trajectories to avoid sudden cost increases, prioritising active customers such as those with renewables or high consumption.
Eurelectric urges derisking over clean energy financing gap
The paper also identifies missing elements. Eurelectric is calling for regulatory predictability on generator charges at the EU level and adequate remuneration frameworks that reward both efficiency and investment certainty, as well as clarification that locational signals should apply only through connection charges, in order to avoid unsettling existing assets or creating uncertainty for new investment. (hcn)
