Integrid - Bridging the Gap

68 also make it easier for the aggregator to comply with the prequalification criteria set by the TSO leveraging the different flexibility potential of different types of DER. Providing value to consumers through energy and data services: InteGrid has also addressed end consumers directly who would be able to reduce their energy bill thanks to energy management systems and self-consumption, or to receive data-based services from different stakeholders. Setting electricity tariffs that promote efficient end-user response: Extracting the value of demand response requires electricity tariffs that promote end-user flexibility. Retail tariffs comprise the energy costs (and retail fees) on the one hand, and the regulated charges on the other. The scope of regulation is different for each of these components. Concerning energy prices, dynamic prices that follow hourly, or even more granular market prices are the most suitable approach to promote end-user flexibility. This could be introduced as the default regulated tariff, where last resource tariffs exist, and/or mandating certain suppliers to include this alternative in their offers. When introducing dynamic price contracts, retailers should be required to publish clear and transparent information on this alternative, including the potential risks. Additionally, particularly when market price caps are high, safety nets for consumers may be introduced. The second component of the retail tariff corresponds to the regulated charges, which consist of transmission and distribution costs, as well as other policy costs such RES-related costs. Their allocation to the different tariff terms has considerable influence on the price signals seen by end consumers. To the extent possible, all the costs not related to the electricity supply should be removed from the regulated charges included in the electricity tariff. However, this is not always possible due to economic, political or acceptance reasons. Thus, when some of these costs remain in the electricity tariff, they should be allocated in the least distortive way possible, particularly avoiding artificially high volumetric charges. Enabling and promoting efficient renewable self-generation and self-consumption: Renewable self-generation can create value for consumers and the system, support the growth of RES and enhance end-user involvement. Therefore, regulation should enable self-generation, including collective self-generation, to develop without undue barriers such as excessive administrative requirements, as set out in Directive (EU) 2018/2001. In this regard, the proper allocation of regulated charges discussed in the previous section is a key topic, as the volumetric component of the tariff can be seen as the opportunity cost of the electricity self- consumed. Hence, the need to have properly designed tariffs that avoid cross-subsidization and potential cost recovery problems. These problems exacerbate when large volumetric tariffs are combined with net-metering schemes. An additional drawback of net-metering is that it effectively eliminates any incentive for flexibility, including energy management or storage technologies. Therefore, net-metering schemes should be phased out where they exist in favour of schemes based on net-billing or market participation. Providing a clear framework for metering data access and management: Access to data is a fundamental requirement not only for consumer engagement, but also for other business models such as aggregation, behavioural demand response and data services. Therefore, an efficient data access framework is necessary. Such a data access framework may well be impacted by the data management model adopted by different countries. Many European countries are currently implementing a decentralised data management model. In these cases, especial attention must be paid to ensure seamless data access by consumers and authorized third parties. On the other hand, the establishment of data platforms with a standardized format and open access to other parties enables the non-discriminatory entry of new actors.