CEER Emphasises Critical Role of National Energy Regulators in European Commission’s Guidance on Network Tariffs
The Council of European Energy Regulators (CEER) takes note of the European Commission's newly presented Communications on Future-Proof Network Tariffs and on Grid and Storage Infrastructure as well as the accompanying Recommendation, recognising these as potential instruments for achieving Europe's decarbonisation objectives. These documents rightly confirm the central and independent role of National Regulatory Authorities (NRAs) in designing and implementing the regulatory framework, particularly when it comes to their core competence to fix or approve tariffs and their methodologies, or both.
NRAs possess the core competence and expertise to ensure that the network tariff design contributes to a cost-efficient and fair energy transition by providing the right incentives for the optimal use of existing grid infrastructure and reducing the need for additional grid investment, thus helping to deliver more affordable energy to consumers. The Commission's guidance explicitly acknowledges this critical regulatory function.
On behalf of the regulatory community, CEER underlines three core considerations to take forward the set of instruments identified in the Commission documents:
Firstly, regarding network tariff design, NRAs will continue to develop dynamic, cost-reflective pricing structures. This includes incorporating signals that incentivise efficient grid use while fairly allocating costs among all system users, for example time-differentiated or locational charges. The careful calibration of these tariffs represents a core regulatory function where NRAs' technical expertise and independence are indispensable to account for the diversity of EU energy markets. A stable, independent and non-discriminatory regulatory regime is paramount to attracting, and providing credible assurances, for the much-needed investments in the infrastructure required to achieve the energy transition.
Secondly, NRAs will play a pivotal role in facilitating the energy transition by creating regulatory frameworks that enable innovation while protecting consumer interests. This includes establishing appropriate network and market access rules for emerging technologies like storage and demand response, ensuring these solutions can contribute fully to system flexibility without facing undue barriers.
Lastly, regarding infrastructure development, several NRAs are tasked with assessing and streamlining critical grid projects to eliminate bottlenecks and accelerate renewable energy integration, at the lowest cost to society. This includes ensuring fair recovery of investment costs while maintaining rigorous standards for transparency and non-discriminatory access and facilitating timely implementation of infrastructure. The Commission's emphasis on cross-border coordination further reinforces the need for strong regulatory oversight from NRAs to optimise regional infrastructure deployment.
NRAs possess the technical know-how, market knowledge and regulatory tools to implement these policies effectively. We welcome this clear affirmation of our role and stand ready to draw on these guidelines to deliver concrete regulatory actions that enable an efficient, affordable and sustainable energy system for all Europeans.
The documents also highlight the need for close cooperation between NRAs and their engagement with stakeholders, including governments, system operators and market participants. While respecting the independence of regulatory decision-making, this approach has always been crucial to addressing complex challenges such as infrastructure permitting, grid connection queues and the integration of new technologies.
Looking ahead, CEER will continue to support its members in implementing these priorities through the knowledge sharing and best practice exchange that we have developed throughout the years.
Press Contact:
Mr Sasan Sharifi
Tel: +32 492 20 09 74
E-mail: sasan.sharifi@ceer.eu
