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Targeted Charging Review
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Energy storage and flexibility
Dialing up the unknowns on network charging
In a world of open governance code modifications, change is a constant. You only have to look at the number of code modifications ongoing at any one time – National Grid lists 36 modifications in development relating to transmission network charging alone – for evidence of that. But in recent...
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Energy storage and flexibility
Network charging – what’s been going on and why should I care?
Across Great Britain there are ~810,000km of wires and underground cables that make up our electricity network. Split between the higher voltage, transmission system and the lower voltage distribution system, these lines and cables are responsible for transporting electrons up and down the country to provide consumers with the necessary...
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Business supply and services
Re-balancing the balancing costs –BSUoS charges to be levied solely on suppliers from April 2023
Balancing the electricity system costs money. National Grid in its role as Electricity System Operator (ESO) takes actions in every half hour to achieve the remarkable feat of keeping supply and demand finely balanced on our national electricity system – maintaining a system which runs between 49.8 and 50.2Hz with...
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Low carbon generation
What to look out for in Third Party Charges in 2022-23
In recent months, the GB energy market has been exposed to extreme volatility as wholesale prices have grown rapidly, leading to a significant number of supplier exits and questions over consumer affordability of energy bills. This has resulted in notable movement across a number of non-commodity costs (also known as...
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Regulation and policy
Electricity transmission charging reform – overtaken by changing priorities?
Charging for the transmission network is never out of the development process for long. From major reviews, such as that initiated under Project Transmit in 2010, to significant reforms such as removing the triad benefit from distributed generation in 2018, and a host of smaller developments, change seems the only...
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Low carbon generation
Up north and down south – trends for generator TNUoS charging
The topic of generator Transmission Network Use of System (TNUoS) is becoming a subject of increasing interest for stakeholders as regulation, policy, and the generation mix create potential volatility for future charging trends. The significant costs posed through TNUoS are an important consideration for generators, with high variability between regions...
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Net zero corporates and ESG
Major energy policy and regulatory changes discussed in our December Net Zero Business forum
On 10 December 2020, Cornwall Insight hosted its Net Zero Business Forum. Held four days before the release of the UK government’s Energy White Paper, the focus was on the Prime Minister’s 10-point plan, the Spending Review and the National Infrastructure Strategy. Head of Relationship Development Robert Buckley and Head...
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Regulation and policy
Ofgem’s Network Access and Forward Looking Charges review – should I be interested
Spoiler – if you are a distribution connected generator, yes, In a big way Ofgem is currently progressing one of its biggest overhauls of network charging; with the Targeted Charging Review having only recently concluded that is quite a statement. We have already seen the value to distribution connected generators...
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Regulation and policy
Targeted Charging Review residual network charges – some remainders
While Ofgem has ruled on the arrangements that will apply to distribution use of system (DUoS) charges from 1 April 2022 following the regulator’s Targeted Charging Review (TCR) Significant Code Review (SCR) decision last November, it has still to determine a series of CUSC modifications that aim to put in...
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Regulation and policy
Spring renewal: CMP332 withdrawn pending reinvigoration
Ofgem’s Targeted Charging Review (TCR) has been a major workstream in the electricity industry since it was kicked off in March 2017. Looking at several elements of the network charging regime that were deemed no longer fit for purpose in the changing energy system, it has wound its way towards...
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Commercial and market outlook
Editor’s Pick | Ofgem delays Transmission Demand Residual change to 2022
The regulator has accepted a request by National Grid ESO (NGESO) to replace the current CUSC proposal to implement the Targeted Charging Review (TCR) decision for a fixed residual transmission network use of system (TNUoS). A new implementation date of 1 April 2022 will replace 1 April 2021. NGESO submitted...
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Energy storage and flexibility
Storage story: a regulatory run-down
While electricity storage has long been recognised as a crucial solution to mitigating the drawbacks of some types of renewable generation, it has taken some time for the regulatory and charging framework to catch up. It has taken years, but recent progress on the licensing and exemptions from some final...
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Commercial and market outlook
Editor’s Pick | The latest chapter in the ongoing network charging saga
This article was originally published in Energy Spectrum Issue 692 on 18 November 2019. With the publication of a decision on the Targeted Charging Review (TCR) Significant Code Review (SCR), Ofgem’s attempt to reshape electricity network charges to be fit for a world of decentralisation and electrification have entered their next phase....
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Regulation and policy
BSUoS task force report sets scene for Targeted Charging Review decision
The Electricity System Operator (ESO) led task force issued its final report on 31 May, recommending that all the costs in balancing services use of system (BSUoS) charges should be treated solely as cost recovery. The report will feed into Ofgem’s decision on the Targeted Charging Review (TCR) Significant Code...
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Commercial and market outlook
Five things we learnt from Energy Spectrum | 657
An increasing number of interventions, including new mutualisation events, are likely to cause shocks in energy third party charges in the coming years. That is the conclusion of this week’s Energy Perspective, in which we explore the current level of these costs for policy and networks, focussing on changes for...
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Low carbon generation
Paradise Lost: The changing face of Embedded Benefits
Current electricity market arrangements give rise to the concept of “embedded benefits”. These are predominantly supplier costs that are reduced or avoided via contracting with small-scale generation connected at the distribution network level instead of the national transmission system. Distributed generation does not generally attract charges for using the national...
