Abstract
New technology such as smart meters gives possibilities for developing new network tariffs. Usually the tariff contains several parts, and how these parts are structured and differentiated, depends on the purpose of the tariff. A new research project “Smart Tariff“ (2014-2017) will use smart meters and available data to develop new tariffs “top-down”, ensuring different purposes of the tariff. The paper discusses different purposes for the network tariff in interplay with power market pricing and demand response, and how different tariff element can be designed based on technical challenges in the local grid.