Targeted Charging Review: Significant Code Review

The Targeted Charging Review (TCR): Significant Code Review (SCR) is an Ofgem-led project that assesses how residual network charges should be set and recovered in Great Britain.

In August 2017, we launched the TCR 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.

This page will provide updates as the SCR progresses, including publications, and information on our upcoming stakeholder events. We will consult on the changes we propose as a result of the review.  

TCR objectives

The objectives of this SCR are to:

  1. consider reform of residual charging arrangements for both generation and demand, to ensure it meets the interests of current and future consumers
  2. keep the other ‘embedded benefits’ that may distort investment or dispatch decisions under review. 

Residual charging

The project is shaped around three core questions on how a residual charge could be designed:

  1. Who should pay - generation, final demand or a combination of both?
  2. What mechanism should be used to collect charges? For example, should it be based on volumes used or other means, such as a fixed or capacity charge?
  3. How should charges be implemented – by voltage level, user group, ability to respond to signals, or a combination of these?

Assessing options

To assess options for residual charges, we will undertake a principles-driven assessment. The principles we will use to assess the potential changes are: 

  1. reducing distortions 
  2. fairness 
  3. proportionality and practical considerations 

Questions

If you have questions about the TCR please contact us at TCR@ofgem.gov.uk

Use the feed below to access all our publications and updates relating to the review.

Publications and updates

  • Published: 4th May 2018
  • Open letters and correspondence
  • 1 Associated documents
An open letter following Ofgem’s decision to reject CMP261.

  • Published: 27th Mar 2018
  • News and blogs
  • 3 Associated documents
We invite you to attend a technical stakeholder workshop on the Targeted Charging Review.

  • Published: 9th Feb 2018
  • Agendas, minutes and presentations, Factsheets
  • 2 Associated documents
This note provides a summary of the two Targeted Charging Review: Significant Code Review stakeholder workshops held in November.

  • Published: 6th Nov 2017
  • Guidance
  • 1 Associated documents
This document sets out our latest thinking on how we will progress with our work on the Targeted Charging Review: Significant Code Review.

  • Published: 1st Nov 2017
  • Open letters and correspondence
  • 0 Associated documents
We invite you to attend a stakeholder workshop on the Targeted Charging Review.

  • Published: 4th Aug 2017
  • Decisions, Open letters and correspondence
  • 7 Associated documents
Following our consultation in spring, we have decided to launch a Targeted Charging Review (TCR) Significant Code Review (SCR).

  • Published: 13th Mar 2017
  • Closed: 5th May 2017
  • Consultations and responses
  • 3 Associated documents
Following the TCR consultation, we launched a Significant Code Review (SCR) on 4 August 2017.