Grid congestion measures
ACM adopts grid congestion measures and publishes assumptions for future tariff adjustments
The Consumer & Market Authority (ACM) has adopted important grid congestion measures to encourage large consumers to put less load on the power grid during peak times. These ACM grid congestion measures are intended to make room for other consumers and producers of renewable electricity. The ACM expects that additional measures will be needed in the coming years to promote flexible use of the power grid through adjusted tariffs and to keep long-term costs manageable. Therefore, the ACM has established principles it will use in future tariff adjustments.
In April 2024, the ACM announced a broad package of measures against grid congestion. With the publication of these three decisions, the ACM has now adopted almost all the announced measures against grid congestion. The ACM stresses the importance of rapid implementation of these measures by stakeholders and has set a tight but realistic deadline for this.
Manon Leijten, ACM board member, explains: “With these decisions, the ACM has laid down a comprehensive package of measures against grid congestion. It is crucial that parties start working on these quickly. At the same time, we realise that more measures will be needed in the future. The established criteria offer insight into which proposals can improve the tariff structure. The ACM is happy to enter into discussions with grid operators and other interested parties to further work out these and other adjustments.”
Grid congestion measures to encourage flexible use
Grid congestion occurs during peak moments when demand for electricity exceeds the supply the grid can handle. Outside these peak moments, however, there is sufficient capacity. Therefore, from 1 January 2025, wholesale consumers connected to TenneT's national high-voltage grid will receive a discount if they use their connection less during peak times. Large-scale consumers who actually use their connection to the maximum during peak times will pay more. From 1 April 2025, grid operators will also be able to offer contracts that allow large-scale consumers not to use their connection at all during peak hours in exchange for a lower tariff. These kinds of contracts are ideal for companies that can regulate their consumption well. Large consumers on regional grids can use their connection with such contracts only during agreed hours (time block contract). For wholesale consumers on the high-voltage grid, they can use their connection at least 85% of the time (time-based contract).
Starting points for future rate adjustments
The ACM expects that additional measures will be needed in the coming years to promote flexible use of the power grid. Therefore, the ACM has established starting points for future tariff structures. Network operators and other stakeholders can use these starting points when working out change proposals. In general, the ACM assesses changes that score positively on the basic principles favourably. The ACM can also develop and adopt its own proposals based on these principles.
One example of new tariff structures is the introduction of an input tariff, for which the ACM is currently investigating. With a feed-in tariff, connected parties that import electricity must also contribute to transmission costs, thereby reducing costs for other grid users. Currently, transmission costs are only paid by customers. Another example is tariff differentiation for small consumers, which grid operators are currently studying. Small consumers with a connection of up to 3×25 amps currently pay the same tariff regardless of their usage.
Grid tariffs are an increasing part of energy bills. All efficient costs incurred by network operators must be shared fairly, objectively and transparently between different types of network users. Tariff differentiation for types of users is only possible if it meets European principles of cost reflectivity, system efficiency, transparency and non-discrimination. The ACM stresses that this is always a distribution issue: if one grid user pays less, others must pay more. After all, the total cost of operating the grids does not change. The ACM is therefore not allowed to make companies pay a lower tariff because it would otherwise be harder for them to compete with companies in other countries. If there is a social desire to treat certain sectors or types of users differently, this should be done outside the tariff structure, for example through subsidies.
Source: ACM
Read here. more about our solutions for grid congestion.
