Investigation of Price Signal Interactions between Dayahead Electricity Prices and Dynamic Grid Tariffs

The energy transition requires improved alignment between electricity generation and consumption. Dynamic electricity prices already exist and exploit household flexibility in the EU, while variable network tariffs remain in an early stage and are applied only in some European countries. In Austria, electricity bills consist of the energy price, a currently static network tariff, and taxes and levies. Opposing incentives from energy prices and network tariffs can prevent effective price signals from reaching consumers. Therefore, this paper analyzes the interaction between dynamic energy prices and variable network tariffs. For 2021 and 2024, it quantifies the share and temporal distribution of opposing incentives for network tariffs in Denmark, Spain, and Switzerland, as well as for a simulation-based tariff. Using a Python function that compares price and tariff signals with the previous week’s median, aligning incentives are found in 26% to 59% of hours.