Charging arrangements

We have responsibility for ensuring that the Distribution Network Operators (DNOs) charge customers in an appropriate way for connecting to, and using, the electricity distribution networks.

This area sets out information about our policy, including the structure of charges project, and documents on policy work conducted thereafter.  We do not approve the charges themselves, but the methodologies used to calculate them.

Under the structure of charges project, the DNOs developed common approaches to connections charging and distribution use-of-system (DUoS) charging. These common approaches include:

  • from 1 April 2010, all customers connected at the lower voltages (all low voltage (LV) and most high voltage (HV)) have been charged DUoS under the Common Distribution Charging Methodology (CDCM)
  • from 1 April 2012, demand customers at the higher voltages (some HV and all extra-high voltage (EHV)) have been charged DUoS under the EHV Distribution Charging Methodology (EDCM)
  • from 1 April 2013, generation customers at the higher voltages have been charged DUoS under the EDCM
  • from 1 October 2010, the DNOs' connections methodologies have incorporated the Common Connections Charging Methodology (CCCM).

These common charging methodologies are set out in the Distribution Connection and Use of System Agreement (DCUSA) document. They can be modified through the DCUSA open governance process, in which we make the final decisions. We also make decisions on the form of the DNOs' charging statements.

The DNOs' charging statements can be found on the website of the Energy Networks Association. Charging issues are discussed by an industry group called the Distribution Charging Methodologies Forum (DCMF).


Publications and updates

  • Published: 7th Feb 2018
  • Decisions
  • 1 Associated documents
We are granting DNOs a derogation from their charging methodology and notice period due to a Last Resort Supply Payment claim by Co-Operative Energy.

  • Published: 29th Jan 2018
  • Closed: 26th Feb 2018
  • Consultations and responses
  • 4 Associated documents
Recovery of costs incurred in operating ‘flexible connections’: consultation

  • Published: 21st Nov 2017
  • News and blogs
  • 0 Associated documents
Charging Futures Forum launched on 9 November 2017

  • Published: 1st Nov 2017
  • Decisions
  • 2 Associated documents
Derogation to allow Northern Powergrid (Yorkshire) to charge certain customers outside of its methodology to avoid double charging for the same assets.

  • Published: 3rd Mar 2017
  • Decisions
  • 3 Associated documents
Derogations to allow Western Power Distribution to charge customers incorrectly to mitigate customer detriment from an error in its calculation of charges.

  • Published: 6th Jul 2016
  • Decisions
  • 3 Associated documents
Ofgem’s decision to approve UK Power Distribution Limited’s proposed Use of System Charging Methodology and Use of System Charging Statement effective 1 July 2016.

  • Published: 11th Jan 2016
  • Decisions
  • 1 Associated documents
In December 2014 we consulted on whether the voltage rule should take precedence over the High Cost Cap when Distributed Generation connections trigger both rules. We considered stakeholders’ concerns before confirming our view.

  • Published: 17th Dec 2014
  • Closed: 25th Feb 2015
  • Consultations and responses, Open letters and correspondence
  • 16 Associated documents
This letter invites comments on our view, subject to consultation, for the voltage rule to take precedence over the High Cost Cap as we consider this position allows for more consistent treatment between different types of customers and a fairer...

  • Published: 11th Nov 2013
  • Decisions
  • 1 Associated documents
We have decided not to veto UKPN’s proposed modifications to its Connections Charging Methodology Statement (CCMS). This is a housekeeping modification to its CCMS to reflect the latest competition test decisions.

  • Published: 16th Aug 2013
  • Closed: 11th Oct 2013
  • Consultations and responses
  • 12 Associated documents
We are seeking views on the proposed changes to DCUSA which would add a new section to the National Terms of Connection (NTC).