Introduction to Network Tariffs and Network Codes for Consumers, Prosumers and Energy Communities

Authors: Tim Schittekatte, Leonardo Meeus

To ensure that the new deal for energy customers and citizens materialises, the engagement of
consumer organisations, energy communities and NGOs on the topics of network tariffs and network
codes is essential. This text, developed for an FSR online training course specifically targeted at this
group of stakeholders, aims to facilitate that engagement. In the first chapter, we discuss the main
principles of distribution network tariff design, guiding the reader from the (theoretical) first-best
distribution network design all the way to why the current practices were adopted. Subsequently,
issues with current practices are discussed, and possible tools to overcome these challenges are briefly
described. In the second chapter, we focus on EU electricity network codes. On the basis of a discussion
around the balancing mechanism, we show that the network codes and guidelines imply certain
obligations for all relevant parties, but that they also create opportunities.