In Search of Fair Network Tariffs for Electricity Prosumers : A Study of Conflicting Implementations of EU Rules on Network Tariff Design and Energy Sharing

Energy sharing is a new concept on the European electricity market that must be implemented by EU member states. While a few European countries have implemented reduced network tariffs for energy sharing, the Swedish Regulatory Authority claims that adjusted tariffs for energy sharing are incompatible with the principles of cost- reflectiveness and non-discrimination laid down in article 18 of the EU Electricity Regulation. These different approaches to energy sharing raise the question whether article 18 in the Electricity Regulation limits the possibility to apply reduced network tariffs for customers that are engaged in energy sharing. Energy sharing and network tariff design have partly shared objectives, namely, to provide a more efficient use of the electricity network. Reduced tariffs can make engaging in energy sharing more attractive and reflect the benefits that energy sharing brings to the electricity network. This study shows that reduced tariffs for energy sharing can provide signals that leads to a more efficient use of the electricity network in the long run. Such tariffs can be viewed as cost reflective and in line with the EU regulation.