The Energy Agency is launching a project to revise the methodology for setting the network charge and the tariff system. The new methodology must address the development aspects and requirements of the implemented European legislative package Clean Energy for All Europeans, which focuses on the distributed generation and active role of a consumer.

The Slovenian power system is witnessing a radical transformation. Electricity is produced and used in different ways, at different locations, and at different times. Production of electricity is becoming increasingly decentralised and from various sources (in the future only from renewables or environmentally neutral). The electrification of transport and heating is expected to result in significantly higher demand. Changes in energy use can benefit both consumers and society as a whole, but simultaneously pose a significant challenge for the Slovenian electricity networks, as the system’s capacity is limited. Changes in energy flows may increase the fall in supply quality and, consequently, affect the operator’s costs and delays in connecting new customers. It is important that these changes are effectively managed without creating unnecessary additional costs. Fair treatment must be ensured for consumers – both active customers and those who are unable to participate actively in energy markets or are considered vulnerable.

The energy system´s transformation creates a number of opportunities and challenges for electricity networks and, consequently, the energy regulator. The Energy Agency has formulated a recommendation that a crucial part of responding to these challenges is to provide adequate price signals in the form of tariffs for network access. The regulator aims to ensure the efficient and flexible use of the electricity system that allows every user the necessary access and use of new technologies and services, while generally avoiding unnecessary costs on electricity bills. In this context, the Energy Agency identifies the following priorities:

• enabling demand to grow, especially as a result of new low-carbon technologies, while managing network constraints;
• management of distribution networks constraints as a result of an increase in production to be connected;
• an effective interface between transmission and distribution;
• empowering consumers to play a more active role while protecting vulnerable groups.

A prerequisite for the effectiveness of regulatory solutions in priority areas is the efficient use of advanced measurement systems and related data services, ensuring active operation of distribution networks, effective coordination between electricity operators, and ensuring an adequate digitalisation level of the sector.

The project’s objective in question is to ensure more efficient network access and its use, meet users’ needs better or increase the efficiency of networks, considering regulatory principles and additional aspects. The Energy Agency will support the project through appropriate outsourcing of services and a public consultation process in which it aims to involve all interested public.
The project’s main outcome will be the revision of the methodology for setting the network charge and tariff system. Among the expected results are amendments to encourage users to make efficient use of the network in periods or geographical locations, where there is more spare capacity, which will consequently reduce the need for new investments.
The new methodology will be applied mutatis mutandis by the Energy Agency in a general act setting out the methodology on calculating network charges for electricity system operators for the following regulatory periods.