The new electricity network use tariff: What does it mean? Here's the explanation.

What are network fees?

Network usage costs, or network fees, represent the transport and distribution of energy, infrastructure maintenance, and metering-related charges.

They are one of three components of electricity pricing, alongside:

• Energy, expressed in kilowatt-hours (kWh), which reflects your actual consumption.
• Taxes, which include the compensation mechanism and the electricity consumption tax.

The network fees are set by grid operators and approved by the Luxembourg Institute of Regulation (ILR).

Why is this changing?

As of January 1, 2025, the calculation of network fees will change to adapt the electricity network to challenges related to the energy transition.

To reduce dependence on fossil fuels, electricity is increasingly being prioritized, particularly for mobility and heating. At the same time, electricity production is becoming more decentralized, creating new challenges for the network.

The new tariff structure aims to encourage consumers to optimize their network usage and adopt greater flexibility.

What is changing?

Until December 31, 2024, network fees were calculated based on consumption (in €/kWh), with an additional network access and metering charge.

From January 1, 2025, your grid operator will introduce the concept of power into the calculation of the new tariff for low-voltage electricity network usage.

The network fees will now include:

• A fixed part:
  • Fixed fee (in €/month): Varies depending on the reference power category assigned to you. This is determined by the grid operator based on your consumption behavior over the past 12 months. Metering and meter rental charges are also included.
• A variable part:
  • Volumetric fee (in €/kWh): Applied to the total electricity consumed (from the network).
  • Exceedance fee (in €/kWh): An additional fee for electricity consumed beyond your reference power level.

Am I affected by this change?

All low-voltage electricity network users with a smart and communicative meter are affected by the new network use tariff, regardless of their energy supplier.

Customers with analog meters or non-communicative smart meters will continue to be billed under the classic tariff structure.

What will the impact be for me?

Starting January 1, 2025, the grid operator will assign a reference power category (Pref) based on your consumption. Most customers will receive a base reference power of 3 kW, which will be used to calculate the fixed fee.

Some customers may require more power to support, for instance, an electric vehicle charging station, a heat pump, a sauna, or a swimming pool. In such cases, a higher reference power category will be assigned, resulting in a higher fixed monthly cost.

Based on this reference power level, you will be charged for the total volume consumed (in €/kWh), with an exceedance fee applied for power usage above your reference power level. Consumption beyond your reference power level will be charged at a higher rate.

Note that it is perfectly normal to occasionally exceed your reference power level.

Your reference power level will be automatically adjusted monthly based on your consumption habits.

Examples of different usage scenarios:

NOTE: These simulations are based on “generic” consumption patterns and are provided as examples only. They do not include energy-related costs, taxes, or state subsidies. Every household has specific consumption habits. If you wish to simulate the impact for your household, visit your MyCreos account (my.creos.net) to access the simulator.

How can I reduce the impact?

• Reduce simultaneous use of energy-intensive appliances: Schedule their usage (oven, dishwasher, washing machine) throughout the day.
• Use appliances during “off-peak hours” (periods when electricity demand is lower, e.g., night): Programmable timers can help automate this.
• Optimize your electric vehicle charging: Reduce charging power and spread it over time to reduce consumption peaks in your household.
• Eliminate unnecessary standby consumption: Unplug unused devices.
• Monitor your consumption regularly: Use the MyEnovos app or customer portal (my.enovos.lu) to better understand and adjust your usage.

In summary, the new electricity network use tariff aims to distribute costs more fairly based on your consumption and power usage. By understanding and adapting your habits, you can contribute to a more sustainable network while managing the impact on your bill .

Use available tools like the MyCreos simulator (my.creos.net) and the MyEnovos app to anticipate and adjust your consumption.