Decision on DNOs request to temporarily disapply the current DUoS charges notification periods
Decision
Publication date
Industry sector
Distribution Network
On 5 May 2021, we received a request from the Distribution Network Operators (DNOs) to temporarily disapply the notice period for distribution use of system charges (DUoS) during the first two years (2023/24 and 2024/25) of the next price control (RIIO-ED2). The DNOs raised concerns that the current 15-month notice period requires them to set prices before final determinations on allowed revenues are known.
We considered the issues identified by DNOs, but we also recognised that there may be implications of the directions sought by DNOs for other stakeholders.
On 12 July 2021, we issued a consultation to give all interested parties an opportunity to provide feedback and evidence on the impacts of a number of proposed mitigating options. We thank all parties for their considered responses to our consultation and we are publishing those that are non-confidential alongside this decision.
This letter sets out our decision to reject DNOs’ request to disapply the current DUoS notice periods. This letter also confirms that we will not apply penalty interest rates, where any excess over/under recovery eventually incurred by DNOs can be shown to be due to differences between expected and final allowed revenue for regulatory years 2023/24 and 2024/25.