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: 15th Jun 2010
  • Closed: 13th Jul 2010
  • Consultations and responses
  • 26 Associated documents
Seeking views on defining the boundary to determine whether customers should be subject to the common charging methodology for extra high voltage.

  • Published: 1st Apr 2010
  • Decisions
  • 1 Associated documents
Letter revoking a derogation granted to Central Networks pursuant to paragraph 50.36 of Standard Licence Condition 50 of the Electricity Distribution Licence.

  • Published: 21st Dec 2009
  • Decisions
  • 5 Associated documents
Decisions regarding Distribution Network Operator (DNO) requests not to charge in accordance with the common methodology at lower voltages from April 2010.

  • Published: 21st Dec 2009
  • Decisions
  • 2 Associated documents
This letter sets out our decision that four conditions to our approval of the common charging methodology (CDCM) at lower voltages have been met.

  • Published: 17th Dec 2009
  • Decisions
  • 1 Associated documents
This direction approves the governance arrangements applying to the Common Distribution Charging Methodology (CDCM) and the EDCM from the time of their implementation.

  • Published: 20th Nov 2009
  • Decisions
  • 2 Associated documents
This is our decision on a common methodology at lower voltages. We have decided to approve this subject to a small number of conditions.

  • Published: 9th Nov 2009
  • Decisions
  • 1 Associated documents
This letter explains that the Authority has approved EDF Energy (IDNO) Ltd's Use of System Charging Methodology.

  • Published: 14th Oct 2009
  • Guidance
  • 1 Associated documents
This document contains links to gas and electricity network operator connection charging methodologies and gas network operator connection charging statements

  • Published: 28th Sep 2009
  • Closed: 26th Oct 2009
  • Consultations and responses
  • 19 Associated documents
This document seeks views on our minded to decision to approve the common charging methodology at lower voltages subject to conditions. The document also incorporates an impact assessment of the proposals.

  • Published: 28th Sep 2009
  • Open letters and correspondence
  • 1 Associated documents
Letter highlights the DNOs' responses to our 4 Aug letter concerning communicating the impact on charges of new electricity distribution price control review.

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