Everything about the new Flemish capacity tariff
Everything about the new Flemish capacity tariff
What is the capacity tariff?
The capacity tariff is a new tariff methodology that the Flemish energy regulator (VREG) will use to calculate the distribution network costs. This is not an additional cost to the electricity bill; it will replace the current calculation of the grid costs.
When does the capacity tariff start?
The capacity tariff is applied since January 1st of 2023.
Why is the capacity tariff important?
The aim of this new tariff methodology is to provide a financial incentive to consumers and producers to use the grid efficiently by limiting irregularities and providing a stable consumption/production profile. The capacity tariff drives consumers to distribute their energy consumption so that it spreads out throughout the day, limiting peaks and consequently assisting grid operators.
How is the capacity tariff calculated?
Till the end of 2022 grid costs were calculated according to your energy consumption from the grid (kWh). The more you consumed, the more you paid for the grid. The new capacity tariff is based on a combination of the consumption (kWh) and the peak load (kW).
This tariffication method requires a digital meter which measures the consumption and the peak load. (Old) Analog meters have a tariffication with a fixed peak load value of 2,5kW.
Who will have the new Capacity Tariff?
The Capacity Tariff is applicable for all residential and SME grid connections in the Flemish region. Other regions do not yet have this tariff.
What is peak capacity?
The highest average 15-minute power consumption of a month determines the monthly peak. The annual peak is the average of the peak of the last 12 months.
Will this capacity tariff increase my energy cost?
It is very important to understand that:
- The higher the peak, the higher your total grid cost per kWh will be.
- The more consumption, the lower your total grid cost per kWh will be.
Let’s take the example of a typical household with 4000kWh consumption (2000kWh day and 2000kWh night), and make some comparisons based on VREG simulator.
Charging an EV adds 4000kWh (equivalent of 20.000km/year) to your total volume but it will increase the peak as well.
|Consumption||Peak||Grid Fee||Grid fee|
|4000 kWh||4 kW||323 €||0,081 €/kWh|
|4000 kWh||7 kW||443 €||0,111 €/kWh|
|Example 3 Family + EV||8000 kWh||15 kW||893 €||0,116 €/kWh|
Family + EV
|8000 kWh||10 kW||713 €||0,089 €/kWh|
You can verify more simulations on the official page:
What does this mean for me as an EV driver?
I Have a digital meter >
Every month, Fluvius looks at your highest quarter-hour peak in kilowatts (kW), recorded by your digital meter. This is called your monthly peak. Each month the average monthly peak is calculated: that is the average of your monthly peaks from the previous 12 months.
Charging your EV has an impact on your bill as your monthly peak is determined by the amount of household appliances used at the same time.
I have a classic meter >
The calculation method for those who still have an analog meter also changes. Since that device does not register peaks (kW) as the digital meter does, your net rates will be calculated as follows:
– Part of your net tariff consists of a fixed contribution corresponding to a monthly peak of 2.5 kW: the minimum contribution for households with a digital meter.
– The remaining part remains calculated as before, based on your actual energy taken (kWh). It is important to know that this kWh cost is higher than in the case of a digital meter.
When I charge my EV at home, will this have an impact on my average energy cost?
If you have a digital meter, charging your EV at home will increase your consumption (volume) and your peak load. The increase in peak will increase the grid cost, but the increase in consumption will result in a lower energy cost per kWh. In the previous example of a typical household, you see that the differences are small per kWh for example 1 and example 4.
Some tips to consider:
- If you charge your EV at home once, you should continue to charge always in that month. Since you are already paying for that kW peak if you reach it once, might as well use it the entire month.
- A person that only charges their EV at home once in an entire month will have a higher grid cost per kWh since their volume of energy consumed did not increase alongside the peak.
Is there anything I can do reduce the impact of the capacity tariff?
- If you have a classic analog meter, your peak is fixed at 2.5kW so there is no need to do anything now.
- Spread out your home consumption. Try to avoid using all your home appliances at the same time.
- Many car brands offer the possibility for adjustment of the maximum charging rate directly on the car. Reducing from 11kW to 6kW can help reduce your peak. For this we recommend contacting your car manufacturer.
- If you drive a plug-in hybrid electric car, it is likely that your car’s maximum charging rate is already low (3.7kW) so you don’t have to worry about high peaks.
Websites for more information:
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