Targeted Charging Review: Decision and Impact Assessment

We are modernising electricity network charging through two closely-linked reviews: 

• The Access and forward-looking charges review is looking at the ‘forward-looking charges’ which sends signals to users about the effect of their behaviour, encouraging them to use the networks in a particular way; and
• The Targeted Charging Review (TCR) has examined the ‘residual charges’ which recover the fixed costs of providing existing pylons and cables, and the differences in charges faced by smaller distributed generators and larger generators (known as Embedded Benefits).

Today we are publishing our final decision on TCR. We have decided that:

• Residual charges will be levied in the form of fixed charges for all households and businesses.
• We will be removing liability for the Transmission Generation Residual from Generators and making changes to one of the ‘Embedded Benefits’ received by Smaller Distributed Generators in relation to balancing services charges.

The decision document and Impact Assessment were updated on 18 December to correct a further error in the data provided to us by our consultants. This primarily affects table 1 of the Impact Assessment and tables 6 and 7 in the decision document. This affects the indicative charges for LV HH, HV and EHV consumers.

The decision document and Impact Assessment were updated on 9 December to correct some data provided to us by our consultants. This primarily affects table 1 of the Impact Assessment and tables 6 and 7 in the decision document. This affects the indicative charges for the North East Region only and is for LV HH and HV consumers.

Further information

For media, contact:

Stephen Roberts, 07990 139516

Media out of hours mobile: 07766 511470

General enquiries (non-media)

If you are an energy customer looking for help and advice, including complaints about energy firms, please see our Household gas and electricity guide. Citizens Advice also provide a free, impartial helpline service across a range of issues on 03454 040506.

We also regularly share news and post general advice to help consumers get the most out of their energy services via our @Ofgem twitter and Facebook pages.If you have an enquiry or complaint relating to Ofgem’s policies or functions, contact us at consumeraffairs@ofgem.gov.uk or on 020 7901 7295.

For all other non-media related enquiries, please visit our Contact us page.

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.

For energy insights and updates straight to your inbox from Ofgem, please subscribe.

Follow us on Twitter @ofgem, LinkedIn and Facebook.