Energinet and the local electricity grid companies have developed a new model where in future it is the grid companies and not the individual consumers who will be charged by Energinet. The goal is to optimize the entire electricity system and send more power through the grid. Energinet and Green Power Denmark write this in a statement.
The tariff model is intended to ensure better economic coherence in the expansion and operation of the electricity grid and support the increasing electrification of society. Whereas Energinet currently charges end customers directly for use of the transmission grid, in the future the payment will be collected from the 13 distribution companies, who will then include it in their own grid tariffs.
- In this way, the tariff can better take into account the whole. For example, the electricity grid companies can choose to make it cheap to have electricity delivered at night, so that the electricity grid is utilized in the best possible way. The new model also gives the electricity grid companies better opportunities to promote local flexibility and reduce bottlenecks in the electricity grid, says Mette Rose Skaksen, deputy managing director. CEO of Green Power Denmark.
Should reflect the electricity system of the future
The tariff change is related to a shift from central to decentralized electricity production, where solar and wind increasingly cover electricity consumption and are sent directly into the distribution grid. The new model should therefore better reflect today's electricity consumption and load on the grid.
- Therefore, we need a tariff model for use of the transmission grid that reflects current and future conditions. With a common TSO-DSO tariff, Energinet and the local electricity grid companies can optimize the interaction between the different levels - and send the right price signals to the grid customers, says Marie Budtz Pedersen, area manager at Energinet.
The energy companies assess that the restructuring will provide a better connection between the actual power flows and the payments that the grid customers make, without increasing the price of the electricity bill.
- The TSO-DSO tariff is a restructuring and not an additional and more expensive element on the electricity bill. All other things being equal, it will benefit the customers on the electricity grid, says Mette Rose Skaksen and continues:
- Basically, it is best that it is the company that has the grid connection that also sets the bill. This provides the best consistency and transparency for the customer.
The new tariff model is expected to come into force on 1 January 2029. Before then, a legislative amendment must be implemented and approved by the Danish Electricity Authority, and Energinet and the grid companies must adapt their IT systems. In addition, relevant players in the electricity market must be involved and informed about the changes.
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