What role do government subsidies play in setting tariffs?

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In many countries, tariffs are artificially low due to government subsidies. How sustainable is this approach? What happens if the government stops subsidizing energy?

[Barob]

Smart grids can improve the efficiency of the energy system by better managing supply and demand, which could reduce electricity costs in the long term. However, implementing smart grids requires significant investment, which can increase rates initially. However, as the technology develops, the benefits may start to trickle down to lower rates. For insight into how smart grids affect rates, you can follow price developments on elpris idag.