Network tariff reform in the Republic of Ireland-reviewing electricity distribution network tariffs for customers in a decarbonised, decentralised and digitalised future

The Irish distribution network is in a period of rapid evolution. Energy policy targets, emerging technologies connecting to the distribution network, an increase in renewable generation and the electrification of heat and transport are significant factors impacting both the utilisation of the existing network and customers’ future capacity requirements. Investment in the network is needed to support these changes and achieve net-zero targets. At present under the current regulatory arrangements, this additional cost will be recouped from customers through Distribution Use of System (DUoS) tariffs. The Irish distribution network tariff methodology has been in place since circa. 2000 and has provided a stable tariff struct ure for customers and a robust regulated revenue recovery mechanism. When the existing Distribution Use of System (DUoS) tariff structure was introduced, demand customers were traditionally importing electricity from the distribution network. The uptake of behind-the-meter generation has led to customers transitioning from the traditional one-way power flow (importing) to customers having bidirectional power flow (import and export capability). Equally, new technologies have developed over the past twenty years such as battery storage connections at both residential and industrial scale as well as the connection of large-scale system nonsynchronous renewable generation. Smart meters provide data at a more granular level than the data provided by analogue meters. All of these factors contribute to the rationale to review the existing distribution network tariffs to ensure their suitability in a decarbonised, decentralised and digitised environment.