A new network use tariff

Questions about the new network usage tariff

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What does the price of electricity consist of?

Firstly, it is important to distinguish between the price of electricity and the electricity network use tariff which, together with taxes, make up the final price paid by the consumer. It is the network use tariff which is affected by the change in tariff structure. The price of electricity itself is the main variable in the final price paid by consumers. It is not affected by this tariff change and is independent of it.

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Why do we need to change the network use tariff?

In the first instance, network power flows are increasing now, and will increase further in the future, as is simultaneous use (oven, washing machine, electric vehicle charging, heat pump, etc.), also increasing the risk of peak loads or even network congestion. In the second instance, the current system is unfair, because it does not reflect actual network use costs. And so now, and even more so in the future, some users should pay less, and others more, for their network use, depending on their consumption behaviour. That’s why network operators wanted to look to the future and find a fair and complementary solution to this change in network use, as well as continuing with ongoing network expansion.

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In practical terms, what will change?

Applicable from 1 January 2025, the new network use tariff simply places greater emphasis on the concept of power. Please note that power is expressed in watts (W) or, more commonly, in kilowatts (kW). It is an instantaneous value representing the intensity of the action, comparable to the speed of a vehicle or the flow of a river. In future, the impact of each user, and each use, will be reflected in the tariffs applied and, therefore, in the costs billed for network use. A limited number of reference power levels, calibrated in line with the most common uses and profiles, will be automatically allocated to users on the basis of their consumption history, and they will then be billed on this basis.

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What impact will this have on private consumers? Will the average consumer have to pay more?

The transition will be very smooth, and the change will have little impact on the average consumer or on the vast majority of consumers. Only the billing arrangements will change, with greater emphasis on the concept of power. For the vast majority of people, no action will need to be taken either before, or after, the change. In future, all consumers will pay a fair price for their network use, including those whose consumption and network use patterns generate peak loads that then have to be absorbed by the network. The current tariff does not yet reflect the actual costs of these users. Finally, it should be pointed out that the price of electricity (not the network use tariff) is the main variable in the final price billed to the consumer.

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How will I know my category and reference power level?

From January 2025, each consumer’s power level will be shown on their bill. Ahead of application, these power levels will initially be allocated on the basis of consumption history, with the aim of identifying the optimal category from a financial perspective. Once applied, the categorisation will be checked on a monthly basis by an automated mechanism. In some rather exceptional cases, a customer’s request to change categories may be justified, particularly where there have been significant changes in consumption behaviour, such as when installing an electric vehicle charging point or a heat pump.

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Will the network cost more at night with the new tariff structure ?

No, network use tariffs are the same throughout the day and, therefore, do not depend on the time of consumption.

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What can users do ?

  • As a general rule, simultaneous use should be limited, although simultaneous use of standard domestic appliances rarely leads to the 3 kW threshold being crossed.
  • Consumers with equipment or appliances requiring more power can stagger their use over time. For example, by charging electric cars at lower  power levels. The more peak loads can be reduced, the lower the bill for network charges.
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What positive measures can be taken right now?

All network users, regardless of their reference power level, can contribute to more efficient network use, make better use of the existing networks as a whole and help maintain tariff stability. Here are two good tips: be flexible in your consumption by extending it over time and by limiting simultaneous use.

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