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Stijging transporttarieven 2024

TenneT expects further increase in transmission tariffs in 2024

Reading time

4 Minutes

Last updated

4/26/2023

Electricity prices in Europe started rising significantly from the second half of 2021. These high prices have continued into 2022, making them about five times higher than prices in the first quarter of 2021. These price increases are reflected in TenneT's transmission tariffs. In 2023, this already led to a 51% increase for high-voltage (HV) tariffs and 84% for extra-high-voltage (EHV) tariffs. In 2024, these tariffs are expected to rise again by around 80%-90% for HV tariffs and 120%-135% for EHV tariffs. For an average household, this means that the TenneT share on the electricity bill increases from EUR 70 in 2023 to around EUR 132 in 2024. For a typical small business, the TenneT share increases from EUR 413 in 2023 to around EUR 789 in 2024. These costs are paid to TenneT indirectly through the distribution system operator.

Among other things, TenneT has to cover through its tariffs the so-called energy and capacity (E&C) procurement costs. These include the costs for: redispatch, purchasing grid losses, reactive power and contracting balancing capacity (FCR, aFRR, mFRRda). Higher electricity prices also lead to higher prices for these E&C products. In addition, TenneT also has to cover its other statutory duties, including investments in the onshore and offshore national high-voltage grid, through its tariffs.

Increase of costs for energy and capacity

The E&C costs are incorporated in the transmission tariffs for the relevant financial year as an estimate on the basis of the historical average. A post-calculation is then made in the tariffs after two years based on the actual costs. The high costs in 2022 will thus be incorporated into TenneT's transmission tariffs in 2024.

Over the period 2018 to 2020, total procurement costs for E&C averaged around EUR 280 million per year. In 2021, these costs were already around EUR 850 million; in 2022, these costs increased further to around EUR 1.7 billion. These costs are reflected in the 2024 tariffs. TenneT expects these costs to decrease slightly again in 2023, but remain well above the historical average. These costs are currently very volatile due to fluctuating electricity prices.

Advance payment in 2024

The high E&C costs lead to TenneT having to pre-finance a substantial amount for two years. Because of the impact on TenneT's financing capacity, the ACM has announced that these costs will be reimbursed earlier in the tariffs from 2024 onwards (link, in Dutch). The ACM has indicated that it will keep an eye on stable tariff development with regard to the advance payments. The forecast assumes an advance in the 2024 tariffs of 25%-40% of the expected 2023 shortfall in addition to the settlement of the 2022 costs.

Volume discount

The ACM has announced that there is no longer a basis for the volume discount (VCR) (link, in Dutch). Nonetheless, the ACM has yet to take a formal decision. TenneT's tariff forecast does not take the VCR into account. Because the VCR is not taken into account, the tariff increase is somewhat alleviated. For individual customers who previously benefited from the VCR, the abolition of the VCR obviously does lead to an extra large increase in electricity transmission costs.

TenneT transmission tariffs as of 2024

TenneT's tariffs, as a result of the above-mentioned causes, will therefore rise sharply again in 2024. The tariffs in 2024 are expected to increase by around 80%-90% (for HV customers) and 120%-135% (for EHV customers) compared to 2023. These forecasts have been calculated using the method set out in the method decisions for TenneT.

The tariffs from 2025 onwards cannot yet be properly estimated. This is true partly because of the volatility of the E&C costs and partly because of the uncertainty of the pace at which the ACM wants to accelerate the reimbursement of E&C costs in the tariffs. However, tariffs will develop less extreme than in 2023 and 2024. At constant E&C costs, transmission tariffs are likely to continue to rise (around 15% in 2025 and 2026). If electricity prices start rising again, further growth in transmission tariffs is to be expected, although the growth in percentage terms is expected to be substantially smaller than in 2023 and 2024. If electricity prices fall sharply, tariffs are expected to fall again. However, developments in the electricity market are currently so uncertain that no further statements can yet be made about tariffs for 2025 and 2026.

Naturally, TenneT tries to limit its costs wherever possible and thus also the level of tariffs for its customers. For E&C costs, however, TenneT is highly dependent on developments in the electricity market.

Contacts

Woordvoerder Jorrit de Jong

Jorrit de Jong

Spokesperson

Media Relations