EU involvement in the regulation of TSO revenues and grid tarification is limited. Heterogeneity among national transmission tariffs, however, might be an obstacle for functioning competition and adequate investments. We investigate whether the challenges accompanying the move towards “2014”, “2020”, and “2050” warrant a stronger harmonization and, if yes, what form this should take. To discover the need for further EU involvement, we ask (1) whether the existing heterogeneities in regulatory practice might hamper adequate investments or impede efficient competition, (2) whether new EU legislations, notably from the Third Package – once enforced – provide an efficient solution. Increased trans-national involvement may have benefits, such as the better functioning of markets, but it also comes at a cost, such as increased information asymmetries. Both have to be weighted carefully. Practical and political implementability of the proposed solutions is one of our key concerns.
