FTI Consulting Report for smartEn: A Roadmap for Cost-Reflective Electricity Network Tariffs in the EU

The principle of cost-reflective network charges has been part of EU law since 2019, though it has not been fully addressed until recent EU initiatives, including the Clean Industrial Deal and the Affordable Energy Action Plan. These efforts aim to reform tariff methodologies to incentivise flexibility and investments in electrification, with the potential for binding legislation by mid-2025. To contribute to this effort, smartEn, in collaboration with FTI Consulting, has developed a comprehensive study offering actionable solutions to one of the European Commission’s key energy priorities. The report outlines a set of actionable proposals outlining different tariff designs aimed at implementing the cost-reflective principle across EU Member States. These designs provide a roadmap to transition towards pricing structures that reward flexible energy use and prevent unnecessary grid expansion.