In May, the European Commission is expected to present a proposal to amend regulations on grid tariff structure, aimed at better supporting the transition to flexible systems based on renewable energy sources. Increased flexibility of electricity consumption and generation will improve existing infrastructure utilisation efficiency and reduce the need for costly infrastructure expansion, which should also limit increases of network costs. A well-designed distribution tariff system will serve as a systemic tool to incentivize flexibility.

Distribution grids in Poland are facing technical limitations with increasing frequency. Their development is not keeping pace with the energy transition. The result is numerous refusals to connect new renewable energy installations, as well as increasing rate of RES redispatching.

The Reform Institute's report “Grid Tariffs Ready for the Future. EU Recommendations and Practices” compiles the most up-to-date recommendations from EU institutions (ACER, European Commission), indicating the direction in which tariff reforms should proceed.

“Appropriate tariff design can stimulate both investment and encourage behaviors that enhance grid efficiency (i.e., flexibility) – such as reducing or increasing energy consumption at specific times. This will lead to a reduction in the total operating costs of power systems, and thus to savings for all of us” – explains Kamil Moskwik, a fellow at the Reform Institute and the lead author of the report.

For households, distribution fees account for as much as 30% of energy bills. Soon, this share may increase even further, as current tariff models do not encourage consumers to be flexible. Due to the limited potential for savings, consumers often choose single-zone tariffs, where it doesn’t matter at what time of day more energy is consumed. This is a problem because – as the report states – “from the perspective of the power grid, what matters most is when consumers use energy, not how much they use in total”. However, there are ways to change this situation.

New EU legislation coming soon

The reform of grid charges is one of the European Union’s priorities. European Commission President Ursula von der Leyen announced that a proposal for new regulations will be presented in May 2026. Among the solutions under consideration are: making the network fee rates dependent on energy consumption during peak hours, introducing flexible connection agreements, or adjusting network fees to the location of energy consumption, reflecting local network overloads and congestion.

The EC’s actions are, to some extent, a response to the call from the Agency for the Cooperation of Energy Regulators (ACER), which has repeatedly emphasized that the EU must reduce network costs to maintain competitiveness, as they are one of the main factors driving up electricity costs.

Poland has already recognized the problem

However, Member States, including Poland, should not passively wait for the EC to act. Fortunately, work in Poland has already begun. Earlier this year, the Ministry of Energy established a task force to improve the efficiency of electricity network tariff setting, which is addressing, among other things, the reform of how the components of the network fee are calculated. The result of this work is expected to be an amendment to the tariff regulation planned for this year. Its goal is to distribute costs more fairly among system users, better reflect the actual impact of individual consumers on network costs, and ensure the stable operation of the power system.

– The direction of the work by the Team under the Minister of Energy is promising as it aligns with ACER and European Commission guidelines regarding “future-proof” charges. We await the results. Regardless of the outcome, however, we need greater transparency in the process of setting network costs. The Energy Regulatory Office also has a role to play here; it should lead an open discussion on network tariffs from a medium- and long-term perspective – notes Klaudia Janik, climate and energy policy analyst at the Reform Institute and co-author of the report.

The report can be downloaded in Polish here.