Smarter use of network capacity and fairness on costs

Press release

Publication date

Industry sector

  • Supply and Retail Market
  • Distribution Network
  • Transmission Network

Ofgem has today published two working papers related to charging for electricity networks. The role of transmission and distribution networks is changing in the future electricity system. We need to ensure that the costs for the networks are spread fairly among consumers and that network capacity is used efficiently. 

The first working paper is about reforms to ensure that network users are encouraged to connect to and use the system as efficiently as possible. It also examines how network capacity could be traded or transferred between users. The second is an update on the Targeted Charging Review, which is about ensuring that networks recover historic or fixed network costs in a way that is fair across all customers.  

The aim of this work is to ensure that reforms encourage the most efficient use of the system at the lowest cost for customers, and that network charges for all users are fair. 

Andrew Wright, Ofgem’s senior partner for energy systems, explains these documents in more detail in his blog

Further information

For media, contact:

Chris Lock: 0207 901 7225

Media out of hours mobile: 07766 511470 (media calls only)

For investors, contact:

Martin Young: 0207 901 7114 

About Ofgem

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

For facts, figures and information about Ofgem’s work, see Energy facts and figures or visit the Ofgem Data Portal

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