The success of Europe’s energy transition will be determined not only by infrastructure investment, but by our ability to harness demand-side flexibility, empowering consumers to play an active role in the energy system. A critical enabler of this shift is cost-reflective network tariffs.
As highlighted in the Affordable Energy Action Plan, the Commission is to design tariffs that incentivise flexibility. Yet, despite being enshrined in EU law since 2019, the principle of cost-reflective network charges has been largely overlooked. The Action Plan rightly identifies tariff reform as a strategic priority to address rising system costs and accelerate electrification. It has become clear that without tariffs which accurately signal grid conditions, flexibility will remain untapped, and system efficiency compromised.
To inform this debate, smartEn and FTI Consulting have developed a detailed framework of tariff design options. The recommendations are rooted in economic principles, regulatory best practices, and deliver demonstrable system benefits, from peak load reduction to lower overall network costs.
This webinar marks a timely contribution as both the European Commission prepares its Grid Package (Q1 2026) and numerous Member States work in redesigning their tariff structures. It is an opportunity to advance a modern tariff methodology, one that supports a more dynamic, consumer-centric, and cost-effective electricity system.
Now is the moment to ensure that tariff design becomes an instrument of flexibility, not a barrier for it.
