Consequences for Residential customers when changing from energy based to capacity based tariff structure in the distribution grid

Abstract

This paper presents the trends towards capacity based grid tariffs and results from a work analysing the consequences different grid tariffs will have for residential customers, based on their consumption profile. The analyses are based on hourly meter data from 10.055 residential customers in Norway. The work is a result from the Norwegian research project “SmartTariff” (2014-2017), which aims to develop the future tariffs to be introduced when full-scale roll-out of smart meters have been performed. The results show that changing to capacity based tariffs will result in a reallocation of costs between different types of customers, and the customers will pay according to how they affect the distribution grid.