Upcoming Changes in Distribution Network Tariffs – Potential Harmonization Needs For Demand Charges

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review


This paper focuses on pricing of electricity distribution and the upcoming tariff reform. Various countries worldwide are actively researching ways to enhance the cost-reflectivity of small customer (i.e. maximum fuse size of 3x63A) tariffs as smart meter rollouts are being implemented. Smart metering enables gathering of detailed consumption data, which provides distribution system operators (DSO) with the information required to develop their pricing. Various novel pricing schemes have been explored in recent years and tariffs that include demand charges might respond well to the upcoming challenges of changing operational environment. However, in countries where DSOs can form their tariffs independently, there might be a great number of different pricing schemes. To exemplify this, we present the case of Finland, where there are various options for billing larger customers for demand. We discuss also the present Finnish legislation, which states that the distribution fees of the customers cannot be raised over 15% during a 12-month period. The national regulator has to oversee that this is complied with and if there is no level of harmonization in the industry regarding future pricing for tariffs of small customers, this task might become complex if there is a great number of different pricing schemes.
Original languageEnglish
Title of host publicationthe 25th International Conference and Exhibition on Electricity Distribution (CIRED 2019)
Place of PublicationMadrid
ISBN (Electronic)978-2-9602415-0-1
Publication statusPublished - 3 Jun 2019
Publication typeA4 Article in conference proceedings
EventInternational Conference on Electricity Distribution - IFEMA Convention Center, Madrid, Spain
Duration: 3 Jun 20196 Jun 2019
Conference number: 25

Publication series

NameConference proceedings CIRED
ISSN (Electronic)2032-9644


ConferenceInternational Conference on Electricity Distribution
Abbreviated titleCIRED 2019
Internet address

Publication forum classification

  • Publication forum level 1


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