Electricity Network Tariffs Regulation and Distributive Energy Justice: Balancing the Need for New Investments and a Fair Energy Transition.

Abstract

In the years to come, electricity consumers will face increased grid costs associated with their consumption due to the need for investments in grid infrastructures. Both aging infrastructures and new production/consumption patterns relying increasingly on distributed and alternative sources will require economic investments by grid operators, which, in fine, will transfer the costs to final customers. The existing models of remuneration for operators and of costs allocation for consumers need to be updated. A reflection has started in several jurisdictions to address the need for revising grid tariff structure(s) in order to ensure a ‘fair’ share of costs between distribution system operators and electricity consumers, as well as to develop the right incentives through tariff regulation. This chapter reviews theory and practice of grid tariff regulatory reforms in the context of the current energy transition. It discusses how distributive energy justice can be better integrated into the tariff structure.