  Developing new electricity grid tariffs in the context of household
electrification raises old questions about who pays for what and to what
extent. When electric vehicles (EVs) and heat pumps (HPs) are owned primarily
by households with higher financial status than others, new tariff designs may
clash with the economic argument for efficiency and the political arguments for
fairness. This article combines tariff design and redistributive mechanisms to
strike a balance between time-differentiated signals, revenue stability for the
utility, limited grid costs for vulnerable households, and promoting
electrification. We simulate the impacts of this combination on 1.4 million
Danish households (about 50% of the country's population) and quantify the
cross-subsidization effects between groups. With its unique level of detail,
this study stresses the spillover effects of tariffs. We show that a
subscription-heavy tariff associated with a ToU rate and a low redistribution
factor tackles all the above goals.
