Targeted Charging Review

The Targeted Charging Review (TCR) was launched to address Ofgem’s concern that the current framework for residual and cost-recovery charging may result in inefficient use of the networks and unfair outcomes for consumers. 

The TCR has looked at how electricity network residual charges should be set, for both transmission and distribution.

It has also looked at the differences in charging arrangements between transmission connected generators and smaller distribution connected generators (Embedded Benefits).

In November 2019 Ofgem published their final decision on the Targeted Charging Review with supporting documents. Here are some resources to help you understand Ofgem’s decision:

• Ofgem’s decision document

• Supporting analysis, impact assessment and direction to licencees

• Watch the webinar from ESO on TCR modifications to transmission charging or view the slides

• Watch the webinar led by Ofgem on the Targeted Charging Review Final Decision or view the slides

Access and Forward-Looking Charges Review

The scope of the SCR includes:

• a review of the definition and choice of access rights for transmission and distribution users

• a wide-ranging review of distribution network charges (Distribution Use of System (DUoS) charges)

• a review of the distribution connection charging boundary

• a focused review of transmission network charges (Transmission Network Use of System (TNUoS) charges)

The Electricity Networks Association (ENA) launched a major industry initiative in December 2016 called ‘Open Networks’. This includes involvement from energy regulator Ofgem and will progress the transition to a DSO to enable a smart, flexible energy system. An integral workstream for this project is considering network charging, and we are playing a key role within this workstream. You can find further details of the Open Networks Project on the ENA website.