Article | REF: D4921 V1

Electricity transmission and distribution tariffs

Author: Jacques PERCEBOIS

Publication date: November 10, 2024

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4. Conclusion

Networks are an essential part of the electricity industry's infrastructure. They are the essential link between the producer (or supplier) and the consumer. The tightly meshed transmission network and its interconnection with foreign grids are a guarantee of security, as they limit the risk of load shedding thanks to mutual back-up. These networks fulfil public service missions and, because they are natural monopolies, access tariffs to these networks must be objective (based on costs), transparent (i.e. published, as shippers and customers must be well informed) and non-discriminatory (equal treatment of all users must be preserved), which justifies their being regulated. These tolls are costly, as they require considerable investment to maintain and develop the network. Their cost varies between a quarter and a third of the end customer's bill. But this is a prerequisite for guaranteeing...

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