Time-based electricity tariffs to ease grid congestion

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The Dutch Authority for Consumers and Markets (ACM) has unveiled plans to introduce time-dependent electricity grid tariffs for households and small businesses, aiming to ease congestion on the country’s overloaded power network. The proposal comes as the Netherlands continues to grapple with severe grid congestion.

Under the proposal, consumers would no longer pay the same fixed grid charge regardless of when they use electricity. Instead, roughly one-third of the tariff would remain fixed. The remainder would vary based on electricity consumption and the time of day. The system is designed to encourage households to shift activities such as charging electric vehicles to quieter periods when demand is lower.

The changes could affect households very differently, depending on their energy use. Detached homes equipped with both a heat pump and an electric vehicle are expected to face the largest increases. Such homes could potentially pay €300 to €450 more per year, even after adjusting their consumption patterns. By contrast, residents of smaller apartments could see annual savings of around €100 to €200.

According to the ACM, more than half of Dutch households would benefit from the new system. Electricity would be priced using low, normal, and high-rate time blocks, with rates varying between summer and winter. Consumers who reduce their electricity use during peak periods could lower their energy bills. Grid operators believe this would create enough capacity to connect approximately 700,000 additional homes.

The proposal was developed in consultation with Energie-Nederland, Netbeheer Nederland, and the Ministry of Economic Affairs and Climate. Stakeholders will now have the opportunity to respond before the ACM makes a final decision later this year. If approved, the new tariff structure would take effect for large energy users on 1 January 2028, while households and other small consumers would follow a year later.

@anp | NEWSBRAINPORT

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