#62025CC0199EU electricity network tariff rules and public service costs
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This Advocate General opinion examines whether electricity distribution tariffs can include costs linked to public service duties, such as renewable energy support, when those costs are not directly tied to running the network. The case matters for Flemish electricity distributors, the Flemish energy regulator, and customers who ultimately pay network charges. The opinion focuses on how EU electricity market rules should limit network tariffs: charges should reflect efficient network costs and should not be used to fund unrelated policy goals. It also considers whether Belgium may temporarily keep disputed tariff rules in place if they conflict with EU law, to avoid legal uncertainty for operators, regulators, and customers.
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Key Changes
- Clarifies that electricity network charges should be tied to efficient network costs.
- Questions whether public service costs for wider policy goals can be included in distribution tariffs.
- Considers whether national tariff rules can stay temporarily in force to avoid legal uncertainty.
Obligations
What this law requires
Article 18(1) of Regulation (EU) 2019/943 requires network access, use, connection, and reinforcement charges to be cost-reflective, transparent, non-discriminatory, and limited to actual costs corresponding to those of an efficient and structurally comparable network operator.
Article 18(1) of Regulation (EU) 2019/943 prohibits network charges from including unrelated costs that support unrelated policy objectives, such as costs not linked to network access, use, reinforcement, security, flexibility, or efficient network operation.
The Advocate General opinion indicates that public service obligation costs imposed on distribution system operators for social or environmental policy objectives may be incompatible with Article 18(1) of Regulation (EU) 2019/943 if they are passed through electricity network tariffs despite not being connected with network operation.
Article 18(2), (7), and (8) of Regulation (EU) 2019/943 require distribution tariff methodologies to reflect fixed and relevant network costs and to incentivise distribution system operators to operate and develop their networks cost-efficiently.
The referring court questions whether a tariff methodology based significantly on historical cost trends is compatible with Article 18(1) of Regulation (EU) 2019/943 unless it is supported by verification that those historical costs correspond to efficient network-operator costs.