Targeted Charging Review: update on approach to reviewing residual charging arrangements


Publication date

Industry sector

  • Supply and Retail Market
  • Distribution Network
  • Transmission Network
  • Generation and Wholesale Market

In August this year, we launched a Significant Code Review (SCR) to address our concern that the current framework for residual and cost-recovery charging may result in inefficient use of the networks and unfair outcomes for consumers. Today we have published our latest thinking on how we will progress with this work.

In this paper we discuss our collected thoughts on how we intend to resolve the current framework for residual charges before outlining our proposed approach and justifications to our decisions.

  • We believe that residual charges should be recovered from suppliers, rather than generators or a combination of suppliers and generators.
  • We are proposing to take forward four in depth assessments of mechanisms for residual recovery to detailed quantitative assessment (fixed charges, capacity demand charges, gross consumption charges and baseline charges).

We also invite you to attend a stakeholder workshop on the Targeted Charging Review held on 15 November in Glasgow and 30 November in London.

For more information on the workshop, please click here