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.

We are carrying out two charging projects for both electricity distribution and transmission that aim to holistically review our approach to network charging.

The Targeted Charging Review (TCR): Significant Code Review (SCR) is an Ofgem-led project that was launched in August 2017. It assesses how residual network charges should be set and recovered in Great Britain for both electricity transmission and distribution networks. The TCR aims to address our concern that the current framework for residual network charges could lead to inefficient use of the network, leading to adverse impacts on consumers.

The electricity network access project, launched in November 2017 considers the reform of network access and forward looking element. We are focusing on options to define more explicitly arrangements for access to the networks and the options for improvement to the forward-looking elements of network charging.

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 Development Group (DCMDG).

 

Publications and updates

  • Published: 21st Oct 2011
  • Closed: 5th Dec 2011
  • Consultations and responses
  • 20 Associated documents
This document sets out the rationale for granting pre-2005 DG a time-limited exemption from use of system charges.

  • Published: 21st Oct 2011
  • Consultations and responses
  • 1 Associated documents
This letter states that we have published two consultations on use of system (Uos) charges for distributed generators (DG). The first is on a time-limited exemption for pre-2005 dg and the other is on the way forward UoS charges for higher voltage DG.

  • Published: 6th Sep 2011
  • Decisions
  • 1 Associated documents
This document sets out our decision to approve the Extra High Voltage Distribution Charging Methodology (EDCM) for import (demand) charges, subject to three conditions. It also explains why we are deferring our decision on EDCM export (generator) charges.

  • Published: 11th Aug 2011
  • Decisions
  • 1 Associated documents
Decision to grant consent to CE Electric UK (NEDL) to allow them to publish use of system charges not in accordance with their charging methodology. The consent is in order to correct and rebalance an identified error in UoS charges

  • Published: 11th Aug 2011
  • Open letters and correspondence
  • 1 Associated documents
Letter setting out our current thinking in relation to pre-2005 distributed generator (DG) use of system charging and impacts on the Extra High Voltage Distribution Charging Methodology (EDCM).

  • Published: 2nd Aug 2011
  • Closed: 31st Aug 2011
  • Consultations and responses
  • 6 Associated documents
Collective licence modification to clarify the charging boundary that determines whether a customer is charged in accordance with the EDCM or CDCM.

  • Published: 2nd Aug 2011
  • Decisions
  • 1 Associated documents
Decision to clarify the charging boundary that determines whether LDNOs are charged in accordance with the CDCM or EDCM.

  • Published: 13th Jul 2011
  • Decisions
  • 1 Associated documents
Letter explaining the Authority's decision that the distribution network companies (DNOs) have fulfilled the outstanding condition of the CDCM approval to review the issue of generation dominated areas.

  • Published: 17th Jun 2011
  • Closed: 15th Jul 2011
  • Consultations and responses
  • 10 Associated documents
Consultation seeks views on whether the Authority should grant consent, to the electricity distribution network CE Electric UK (NEDL).

  • Published: 13th Jun 2011
  • Reports and plans
  • 1 Associated documents
A final report setting out DNOs' conclusions and proposed way forward for developing the Common Distribution Charging Methodology in relation to the issue of generation dominated areas.

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