Consultation on DNOs request for directions to temporarily disapply the current DUoS charges notification periods
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closed date
Industry sector
Distribution Network
Licence type
Electricity Distribution Licence
Related links
Decision
Notice periods for changes to distribution use of system (DUoS) charges are set out in clause 19.1B of Distribution Connection and Use of System Agreement (DCUSA), and in electricity distribution licence SLC 14.11.
The electricity Distribution Network Operators (DNOs) recently wrote to us requesting formal directions to disapply these notice periods for the first two years of the next price control (RIIO-ED2), starting in April 2023. If the directions were made, DNOs have proposed that they would publish:
- DUoS charges for 2023/24 with 60 days’ notice or 20 working days after we publish RIIO-ED2 final determinations – whichever is later
- DUoS charges for 2024/25 with at least three months’ notice and no later than 31 December 2023.
The DNOs raised concerns that, under the current 15 month notice period (introduced in 2015 through DCUSA modification ‘DCP178’), they would have to set prices for 2023/24 and, potentially, also for 2024/25 before final determinations on allowed revenue under RIIO-ED2 are published at the end of 2022. This may result in increased price volatility and some associated risks, if significant corrections will be required later in RIIO-ED2 when final determinations are known.
Although we have considered the issues identified by DNOs in their letter (published alongside this consultation), we recognise that there may be implications of the directions sought by DNOs for other stakeholders.
We are, therefore, inviting responses from all interested parties to the consultation questions set out in this letter to better inform our final decision later this year.
The closing date for responses is 9 August 2021. Responses should be sent to FutureChargingandAccess@ofgem.gov.uk.