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  4. Ofgem announced a consultation on "Targeted Charging Review"

Ofgem announced a consultation on "Targeted Charging Review"

14 Mar 2017

Ofgem are consulting on launching a Significant Code Review to look at network residual charges, and some charging arrangements for embedded generation under 100 MW. 

Based on the Open Letter from June 2016 on Charging Arrangements for Embedded Generation, Responses to their Charging Arrangements for Embedded Generation, as well as their Call for Evidence on a "Smart, Flexible Energy System", Ofgem are now having a consultation on Targeted Charging Reviews. This is specifically asking for views on network charging for storage. They have stated the "current system of network residual charges should be reviewed, as it has the potential to distort outcomes and increase charges for some consumers.

"We are seeking views on whether we should launch a Significant Code Review to consider these issues and we are seeking views on the principles that should guide us if we proceed with this review."

The proposed Significant Code Review (SCR) will consider the following issues:

  • whether changes to the residual charges would be in the interests of consumers
  • how residual charges could be changed to better promote the interests of consumers
  • whether changes are needed to the current charging arrangements for smaller embedded generation (EG), and when any such changes should be implemented
  • whether any changes to the residual charging arrangements are needed before the completion of our proposed SCR, and when any such changes should be implemented.

For more information on the consultation, please see click here: