Targeted Charging Review: Decision and Impact Assessment
- Supply and Retail Market
- Distribution Network
- Transmission Network
- Generation and Wholesale Market
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.
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