The EU’s energy regulators (ACER) warned last week that annual network costs for consumers could soar 50-100% but the sector says their sums are flawed.
ACER said grid investments would be doubling to €100 billion by 2050, as grid costs grow with electricity demand – but Eurelectric disputes ACER’s low-growth scenario.
By 2050, power demand is expected to hit 4,428 TWh, requiring €67 billion/year in grid upgrades—figures aligned with EU emissions targets.
ACER, however, assumes demand will rise by just 300 TWh per year, reaching 3,345 TWh by 2050, far below industry and EU Commission projections.
If electrification is underestimated, so are grid cost projections. A broader consumer base will share these costs, preventing steep bill increases.
Network charges are just one part of electricity bills, alongside taxes and energy costs.
Right now, electricity is taxed 1.4 times more than gas—a distortion that keeps fossil fuels cheaper. Correcting this could slash energy bills.
Eurelectric’s data suggests household energy bills could halve by 2050 thanks to better efficiency and cheaper renewables.
It said ACER’s alarmist tariff predictions could deter consumers from switching to clean power—undermining Europe’s energy security and decarbonisation goals.
Eurelectric urges ACER to revise its projections and focus on policies that support electrification, not discourage it.
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