CAN Europe and Forum Ökologisch-Soziale Marktwirtschaft (FÖS) present a report examining the financing and tariff structures necessary to modernize and expand Europe’s electricity grids while ensuring fair cost distribution among consumers.
It begins by analyzing the impact of rising grid tariffs on households across Europe, highlighting significant variations between countries, particularly the higher burden faced by lower-income households in Central and Eastern Europe. The study then explores the investment needs of electricity grids, including transmission and distribution networks, and evaluates different financing options. These include national public financing, EU-level funding, private investments, and infrastructure funds, each with distinct advantages and challenges.
The paper also assesses various grid tariff design options, such as volumetric pricing, capacity-based tariffs, and time-of-use tariffs, examining their effects on energy policy goals, revenue stability, and consumer fairness. The findings emphasize the need for a diversified approach, integrating multiple financing mechanisms and tariff structures to balance affordability, efficiency, and sustainability.
Read the report HERE.
