Access and Forward-Looking Charges Significant Code Review – Winter 2019 working paper

Publication date
16th December 2019
Information types
Policy areas

As part of our programme, in December 2018 we launched a Significant Code Review (SCR) into network access and forward-looking charging. The objective of the SCR is to ensure that electricity networks are used efficiently and flexibly, reflecting users’ needs and allowing consumers to benefit from new technologies and services while avoiding unnecessary costs on energy bills in general.

This is the second of two working papers we are publishing in 2019, and consists of a suite of discussion notes setting out our current thinking on:

  • Options for reforming the distribution connection charging boundary: we set out the options for reforming how electricity distribution connection charges are calculated and our initial considerations on whether there is a case for change.
  • Options for focused reforms of transmission network charges: we set out options to better align transmission network charges for different sizes of distribution-connected and onsite generation, and consider options to reform the proportion of forward-looking charges which are recovered from generation and demand users. We also build on the discussion in our first working paper of the different options for the design of transmission network charges for demand users.
  • How options could be applied to small users: We outline our current thinking about how the options we are considering should apply to small users, and whether we may need to make adjustments.
  • Consumer Panel Report: report of Consumer Panel feedback on access and forward looking charging arrangements.
  • Behavioural Insight Report on small users: Behavioural Insight Unit report into small user behavioural responses
  • Illustrative examples: we explain how the options we are considering could benefit different users of the system.
  • External inputs into our work: we provide an overview of the engagement we have undertaken with industry stakeholders.
  • Current arangements: we provide an overview of current access and forward-looking charging arrangements.

We would welcome any comments on this paper by Friday 24 January 2020, and in particular from those stakeholders who have not been able to engage with us via the Charging Futures Forum (CFF) or the Access SCR working groups.

Any views on whether there are additional options we should be taking into account or issues we should consider which are not included in this working paper, or the first working paper that we published in September 2019, would be particularly helpful. Please send your responses to FutureChargingandAccess@ofgem.gov.uk