Electricity Distribution Tariff Reform in Finland Qualitative Analysis of Stakeholder Views on Tariff Harmonization and Demand Charge Practices

Abstract

This paper investigates the ongoing electricity distribution tariff reform in Finland. The reform primarily concerns the inclusion of demand charges to the structures of electricity distribution network service charges (DNSCs) of smallscale end-users and the harmonization of the billing bases of the DNSC components. Public stakeholder comments on the draft regulation published by the Finnish national regulatory authority were used to investigate stakeholder views on the DNSC structures and the harmonization of the billing bases of the DNSC components and highlight the important items included in the comments. The results indicate a strong stakeholder support for the inclusion of demand charges in the DNSC structures of smallscale end-users and the harmonization of the billing bases of the tariff components. As structural reforms concerning electricity DNSCs are not frequent, it is paramount to ensure the actions are made in common understanding among stakeholders for the reform to receive widescale public acceptance.