Summary
Competitive and predictable electricity costs are a prerequisite for industrial electrification and for maintaining energy-intensive production in Europe. Network charges and taxes represent a growing – and increasingly difficult to predict – share of these costs.
The Commission Proposal on Network Charges and Taxes amending Regulation (EU) 2019/943 needs to strike a delicate balance: Adequate and affordable grid infrastructure is a precondition to industrial competitiveness and decarbonisation through direct/ indirect electrification. Yet the costs of its build-out will add to the energy cost burden of industrial users and thus make electrification less appealing for industry.
Key takeways
To navigate this trade-off, Cefic recommends for the framework to:
- Safeguard industrial competitiveness and boost electrification
- Retain national competencies in tariff design
- Promote system-friendly behaviour while recognising industrial limits to flexibility
- Ensure that grid investments are cost-efficient and transparent
- Lower electricity taxes without shifting the fiscal burden to natural gas