Summary
In this joint letter, energy-intensive industries (EIIs) call on we call on EU decision-makers to introduce a cap on network tariffs for, mirroring the similar cap for power producers. Consistent with the provisions currently applicable to power generators, the average network tariffs in every Member State should remain within a certain range, for instance of 0 to 1.2 EUR/MWh.
An optimised and modernised European electricity grid is key to delivering clean electricity supply. However, policy must ensure that rising costs resulting from grid upgrades do not translate into higher network tariffs for our industries, adding to their energy cost burden and compromising their ability to compete.
While various effective options can help reduce the impact of higher grid costs for industrial consumers, a harmonised EU framework for network tariffs is essential for preserving the integrity of the Single Market by removing widening tariff disparities between Member States.
Key takeaways
- Cap network tariffs for energy-intensive industries (EIIs). Keep average tariffs within a defined range (e.g. 0–1.2 €/MWh), similar to existing rules for power generators;
- Policymakers should ensure that grid modernisation and expansion costs do not translate into higher tariffs for EIIs to protect competitiveness and avoid additional energy cost burdens;
- Harmonised EU framework for network tariffs to avoid fragmentation across Member States and preserve the Single Market. At the same time, grid investments require a financial strategy going beyond tariff-based recovery and based on a mix of private financial instruments and EU funds.