Open Letter | Priorities for an optimised use of distribution networks

Following the Accelerate EU Communication’s announcement of a forthcoming legislative proposal on dynamic network prices, smartEn has written to decision-makers at both EU and national levels on a question that is central to the energy transition: how to operate distribution grids far more efficiently.

The two letters share a goal but make different asks, tailored to each recipient’s role.
As Brussels prepares its proposal, smartEn has issued a letter to the European Commission, arguing that dynamic prices alone won’t be enough. The framework should establish common principles for a hybrid, market-based model that combines:

  • Dynamic, cost-reflective network tariffs that give consumers and businesses clear signals on local grid conditions
  • Local flexibility markets that contract and activate demand-side flexibility where and when networks need it most.

Together, these implicit and explicit signals can cut congestion, raise network utilisation, integrate more renewables and lower system costs.

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