Commission Electricity-Bills Proposal Makes Progress on Double Charging — But Leaves Double Taxation Unresolved

Energy Storage Europe welcomes stronger recognition of storage in network tariffs and calls on the European Parliament and Council to close the remaining gaps by adopting clear EU rules against double taxation. 

Rising electricity bills are putting pressure on European industry, households and SMEs. Energy Storage Europe therefore welcomes the European Commission’s proposal to improve network charges and encourage more efficient use of Europe’s electricity grids.

Storage can absorb electricity when renewable generation is abundant and supply it when demand is higher. This helps relieve congestion, reduce renewable curtailment, and avoid unnecessary grid reinforcement.

The proposal requires network charges for storage installations to reflect the benefits they create for the grid and to be limited to the costs they impose on transmission or distribution networks. It also states that network charges should not disincentivise storage and should facilitate non-fossil flexibility, and that member states should avoid double charging.

These principles reflect Energy Storage Europe’s 2025 position paper, which calls for cost-reflective tariffs, coordinated injection and withdrawal charges, and clearer EU-level tariff methodologies.

Double charging: progress, but no complete solution

Energy Storage Europe supports the proposal’s direction for members states to avoid double network charging. However, the principle must become a clear and enforceable rule for the member states.

The final Regulation should expressly prohibit charging storage twice for the same electricity merely because it first withdraws electricity from the grid and later reinjects it. The operative text is an important step, however, the proposal does not expressly define or prohibit double charging, leaving scope for divergent national interpretation. Charges should reflect storage’s net impact on network costs, including the congestion, redispatch, curtailment and grid reinforcement it helps avoid.

Injection and withdrawal charges should be coordinated and proportionate. Tariffs should not penalise frequent cycling when it supports the grid, and the framework should remain technology-neutral across different storage technologies and durations. This includes with regards to prioritisation in grid connections. Energy storage is particularly adaptable to solve congestion issues.

Double taxation remains unresolved

Energy Storage Europe also welcomes the Commission’s effort to create a more level playing field between electricity and natural gas. However, the proposal does not resolve the separate problem of double taxation of energy storage.

In some Member States, electricity can be taxed when used to charge a storage facility and taxed again after discharge and final supply. This treats storage as final consumption even though it temporarily holds electricity before returning it to the system.

Turning sound principles into investable rules

Energy Storage Europe welcomes the proposal’s focus on smart grids, smart meters and better grid data. These measures can help storage respond to network needs and allow regulators to assess whether grid operators use storage and other non-wire alternatives before pursuing more expensive conventional expansion.

Energy Storage Europe calls on the European Parliament and Council to:

• expressly prohibit double network charging in the operative provisions;
• eliminate double taxation of electricity stored for later reinjection;
• require transparent assessment of storage’s costs and network benefits;
• coordinate injection and withdrawal charges;
• ensure predictable and proportionate time and locational signals; and
• implement the reforms rapidly and consistently across Member States.

Daniel Vig, Senior Policy Officer at Energy Storage Europe, said:

“The Commission has taken an important step towards treating energy storage as part of the solution to rising electricity-system costs. Storage should pay for the net costs it creates — not be charged as both an ordinary consumer and an ordinary generator without recognising the benefits it provides. Predictable time-of-use tariffs can be a practical first step towards encouraging storage to reduce congestion, integrate renewable electricity and avoid unnecessary network investment. However, double network charging and double taxation are distinct barriers, and both must be legally removed. The proposal makes progress on network tariffs but fails to provide a concrete legislative solution to double taxation. Electricity stored for later reinjection should not be treated as final consumption at the charging stage. Parliament and Council must now complete the reform by ending double charging and double taxation and ensuring that storage is rewarded for the system value it delivers.”