Reforming Distribution Tariffs of Small Customers: Targets, Challenges and Impacts of Implementing Novel Tariff Structures

The paper discusses the targets, challenges and impacts of novel distribution tariff structures, especially power based distribution tariffs. The paper summarizes the aims and preliminary results of an ongoing Finnish national research project in which distribution tariffs are being investigated together with multiple distribution system operators (DSO), research institutes and other actors of the field. The reformation of distribution tariffs has some clear motivational factors, but at the same time, the topic is very multifaceted, as changes in the pricing of electricity distribution have different effects on different actors of the field like customers, DSOs, electricity retailers and other third parties in the electricity sector (e.g. different kinds of service providers, device manufacturers) and society as a whole. These topics are discussed in a qualitative manner in the paper but also preliminary numerical results are presented to elaborate the customer impacts of novel tariffs.