Power companies want to charge consumers more for using electricity during peaks

Grid operators want to charge households more for using electricity at peak times, according to a plan that they submitted to the Netherlands Authority for Consumers & Markets (ACM). This will distribute the costs of sustainability more evenly and reduce the total bill for tackling the jammed power grid, they believe, AD reports.

Paying according to use is fairer, grid operator Enexis told the newspaper. The measure is also technically feasible - smart meters continuously monitor how much electricity is used and when. Peak time use can then easily be charged at a higher rate.

“It is nice to ask people to voluntarily use less electricity at peak times. But knowing the Dutch, it is useful to add a price incentive. That is also fairer. Those who use the busy network will also pay for it,” Mariëlle Vogt, financial director at Enexis, said to the newspaper.

Last week, it emerged that solving the jammed power grid will cost a massive 195 billion euros. The network needs to be strengthened with thicker cables, more cables, voltage stations, and 50,000 extra transformer houses. That comes down to around 1,100 euros per Dutch person if everyone pays, as is currently the case.

But the power companies point out that not everyone will benefit from the thicker cables because not everyone has a gas-free home with a private car charging station, solar panels, and a heat pump. It is simply unfair to charge apartment dwellers who don’t even have the option to install solar panels the same as the sustainable home resident who drives ten times more electricity through the cables, they argue.

Higher charges for peak time use can also lower the costs for strengthening the power grid, the power companies argue. By reducing the congestion on the power grid during peak hours, the cables can be thinner, and fewer transformer houses will be needed. That could easily cut 30 billion euros off the 195 billion euro bill, according to Netbeheer Nederland.

The grid operators’ plan does not include any amounts. It is not clear when the ACM will respond to it.