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.
The objectives of this SCR are to:
- consider reform of residual charging arrangements for both generation and demand, to ensure it meets the interests of current and future consumers
- keep the other ‘embedded benefits’ that may distort investment or dispatch decisions under review.
The project is shaped around three core questions on how a residual charge could be designed:
- Who should pay - generation, final demand or a combination of both?
- 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?
- How should charges be implemented – by voltage level, user group, ability to respond to signals, or a combination of these?
To assess options for residual charges, we will undertake a principles-driven assessment. The principles we will use to assess the potential changes are:
- reducing distortions
- proportionality and practical considerations
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.