Bun­desnet­za­gen­tur sets rules for the in­te­gra­tion of con­trol­lable con­sumer de­vices

Year of issue 2023
Date of issue 2023.11.27

The Bundesnetzagentur has today presented its framework of rules designed to enable controllable consumer devices such as heat pumps and electric vehicle charge points to be integrated safely and swiftly into the electricity grid, following its second consultation on the rules.

"Today's rules will enable the swift connection and safe operation of heat pumps and electric vehicle charge points. We want to make sure that everyone is connected but also that everyone has a safe network. Network operators will now not be able to refuse to connect controllable consumer devices on the grounds that there may be bottlenecks in their networks. We expect network operators to only intervene when absolutely necessary. The final version of our framework of rules strengthens the ability of consumers to coordinate reductions themselves and factor in the electricity they generate themselves. Consumers will hardly notice intervention as they will still be able to consume a base amount of electricity. If bottlenecks occur, the grid will need to be expanded. We will make sure this happens," said Klaus Müller, Bundesnetzagentur President. "The past months' open and constructive discussions about the rules with all stakeholders have set new standards. Our thanks go to all involved." 

Content of the framework of rules

The electrification of the mobility and heating sectors can help to cut carbon emissions significantly, which is why the Bundesnetzagentur especially welcomes the widespread growth in the use of electric vehicles and heat pumps.

Controllable consumer devices such as heat pumps and private electric vehicle charge points have a higher capacity than most household appliances and tend to consume electricity at the same time. Low-voltage networks are capable of integrating individual new applications but most of them are not currently designed to accommodate a large number of additional applications in a short space of time. The networks therefore need to be optimised, digitalised and expanded quickly.

The Bundesnetzagentur's framework of rules will help to accelerate the transition in the mobility and heating sectors and also guarantee security of supply at low-voltage level even where networks have not been optimised. The Bundesnetzagentur has made a few minor changes to its draft framework of rules presented in June 2023.

Network operators will now not be able to refuse or delay connecting new heat pumps or private electric vehicle charge points on the grounds that there may be local overloading in their networks. In return, operators will be able to relieve the load on their networks by temporarily reducing the amount of electricity consumed by a controllable device if there is an acute threat of damage or overloading in their networks. Any action taken must be based on objective criteria from the state estimation, which reflects the current degree of network utilisation using real-time measurement data. This requires the swift digitalisation of the low-voltage networks, including the collection of real-time data.

Network operators must guarantee that a minimum amount of electricity is available to enable consumers to still operate their heat pumps or charge their electric vehicles. They will be able to reduce the amount of electricity a device can consume down to 4.2 kW for as long as overloading occurs. This means it will still be possible to operate a heat pump or, in most cases, charge an electric vehicle for a 50-kilometre drive within two hours. The arrangements will not affect standard household electricity, and account will be taken of the special requirements of large-scale heat pumps.

The Bundesnetzagentur presumes that operators will only need to intervene in exceptions and without any significant loss in comfort for consumers. It will not be possible to switch off controllable consumer devices completely.

The Bundesnetzagentur's framework of rules strengthens consumers' scope of action. They will be able to choose between network operators directly controlling the consumption of their individual devices or specifying the maximum amount of electricity that can be consumed overall. Consumers choosing the second option will be able to coordinate the reduction in consumption by their different controllable consumer devices themselves using an energy management system and will be able to factor in the electricity they generate themselves. For example, a wallbox charger will be able to consume more electricity if it comes from the consumer's own solar installation.

The aim is to avoid network operators intervening regularly to control consumption. This means that network expansion by the network operators will need to be in line with future developments and demand. Network operators who have taken measures to reduce consumption and who anticipate having to take further measures must take this into account when planning the expansion of their networks.

Network operators will need to publish details of when and how they have intervened in consumption on a joint internet platform using a standardised format. This will make network overloading and the need for network operators to improve their networks more transparent for the public at large.

The rules will apply from 1 January 2024. The Bundesnetzagentur has drawn up transitional rules for existing consumer devices already subject to a load control agreement with the network operator. Existing consumer devices without a load control agreement will be permanently exempt. Night storage heaters will be covered by the transitional arrangements until they are taken out of operation but not by the new framework of rules.

There are also transitional rules for the network operators. Network operators not yet in a position to control consumption using real-time measurement data can take "preventive" measures to control consumption for a maximum of 24 months, subject to certain conditions. These measures involve regular action because overloading is forecast.

Details of how the rules can be implemented in practice will need to be worked out in the near future. The Bundesnetzagentur is calling on network operators to develop recommendations together with other relevant market players for standardised procedures suitable for widespread use for network operators controlling consumption. This would help to implement the necessary processes efficiently but would not be essential for their introduction.

Reduction in network tariffs

Consumers with controllable devices will benefit from a reduction in their network tariffs in return for allowing their network operators to control their consumption. The Bundesnetzagentur has created the first-ever framework for variable network tariffs that makes sure that consumers can be rewarded for shifting their consumption.

The Bundesnetzagentur has developed different tariff reduction modules in view of the wide range of connection and consumption scenarios. Consumers with controllable devices will be able to choose from two modules: a general discount on the network tariff depending on the network operator (module 1) or a reduction of a certain percentage in the unit price (module 2).

Each network operator's general discount (module 1) will be calculated following rules applicable to all operators throughout the country. The discount will vary from €110 to €190 (gross) per year, depending on the network area. This is the equivalent of 50% to 95% of the network tariff payable for the annual consumption of an electric vehicle (around 2,500 kWh). A general discount on the network tariff in combination with a variable network tariff should prove to be very attractive for electromobility.

Module 2 is a reduction of 60% in the unit price. The technical requirement for this option is a separate meter for the controllable device. This option can be combined with a surcharge exemption for heating electricity (CHP and offshore surcharges, surcharge exemption under the Energy Financing Act) and is therefore expected to be particularly suitable for heat pumps in many cases.

Consumers with controllable devices choosing module 1 will also be able to opt for a network tariff that varies according to the time of day from 2025 onwards (module 3). The new variable network tariff is designed to reduce peak loads in the network. Network operators will set different tariff levels for different times of the day based on typical demand in their networks. Consumers will be motivated to shift their consumption to times when demand is low and the tariff is particularly low.

Network operators will not need to charge tariffs under module 3 until 1 April 2025 because a higher degree of digitalisation in the low-voltage networks is first necessary. Network operators will not be able to adapt their measures to control consumption without knowing what effects their price incentives have had. In addition, implementing the rules poses considerable challenges for market players. More time is therefore being given in this case.

The reduced tariffs will be billed using the current structure of energy supply contracts. Electricity suppliers will be required to include clear details of the modules chosen in their customers' bills. There will be no new structure for network operators to bill final consumers directly.

The framework also includes transitional rules for consumer devices for which a network operator has already charged the network user a reduced network tariff under section 14a of the Energy Industry Act (EnWG) before 1 January 2024.

Previous proceedings and consultation on draft determinations

In the first quarter of this year, the Bundesnetzagentur consulted on a key elements paper with its initial considerations on the future model. The Bundesnetzagentur drew up a detailed framework of rules on the basis of the responses and published the framework for consultation up to 27 July 2023.

The framework presented today comprises two determinations. The first determination from Ruling Chamber 6 deals with integrating controllable consumer devices and controllable network connections under section 14a of the Energy Industry Act. The second determination from Ruling Chamber 8 relates to the associated reduction in network tariffs.

Further information on the determinations is available at www.bundesnetzagentur.de/14aenwg and www.bundesnetzagentur.de/steuerbare-ve (in German).