This webpage provides ongoing updates on Ofgem's reforms of network charging.
There are now five main charging reforms underway that could impact on-site and distributed generation, storage and demand-side response -
- Ofgem's Targeted Charging Review
- Ofgem's Access Significant Code Review
- Ofgem's Forward-looking DUoS Significant Code Review
- BSUoS taskforce
- Broader reform of TNUoS
The current status of these reforms is as follows.
Targeted Charging Review
- Current status: Final decision now published and working groups now complete.
- Final decision: Final demand alone should pay ‘residual’ TNUoS and DUoS charges; charges on a p/site/day basis based on bands within voltage levels or agreed capacity, BSUoS embedded benefit should be removed, taskforce set up to consider further BSUoS reform
- Original implementation: April 2021 for Transmission residual charges and moving BSUoS to gross and April 2022 for Distribution residual charges
- Revised implementation: April 2023 for Transmission residual charges (all other reforms remain unchanged)
- Bands and charges: NGESO have now published the kVA bands for residual charging for Distribution. The Distribution networks have now published the tariffs for each band.
Access Significant Code Review
- Current status: Final decision from Ofgem now published and the DNOs directed to start mod groups looking at detailed implementation.
- Looking at: Rights in distribution connection agreements; how much of any reinforcement costs distributed assets should pay.
- Ofgem are aiming for implementation of the changes to connections and access rights from 1 April 2023 (to coincide with the start of RIIO-ED2).
- Implementation of introducing Generation TNUoS charges for <100MW distributed generation now put into TNUoS reforms.
BSUoS reform
- Current status: Ofgem have now issued final decision on P308 and final decision on CMP361/362 is pending.
- Looking at: How should BSUoS be structured and who should pay?
- CMP308: This mod proposes to remove BSUoS from generation so that it is charged wholly on demand.
- CMP361 and CMP362: These joint mods propose to move BSUoS from a tariff determined after the fact and on a half-hourly basis to a fixed tariff set in advance
- Implementation intended by 1st April 2023
TNUoS reform
- Current status: Ofgem have now decided on launching a taskforce with more significant work (possibly an SCR) to be undertaken later. The Terms of Reference have now been published and the ESO is recruiting members.
- Looking at: The scope is largely considering Generation TNUoS charges but will also consider how smaller distributed generation should be charged/paid.
- Implementation: Stil unclear at this stage.
Forward-looking DUoS reform
- Current status: Ofgem have decided to separate out forward-looking DUoS into its Significant Code Review.
- Looking at: DUoS charges – incl. if generation should pay in generation-dominated areas; whether distributed generation should pay TNUoS (it is not currently clear whether DG paying TNUoS will remain in Access or come over to the new DUoS SCR), how charges at LV, HV and EHV are calculated, the balance of p/kW and p/kWh charges and any needed mitigating measures to protect domestic consumers from volatile or very high network charges
- Implementation: No earlier than 2025
Ongoing consultations
None currently
Ofgem November 2022 update
As a result of moving people onto immediate energy crisis work this Winter, Ofgem’s work on longer-term network charging reforms has been de-prioritised.
Work to finalise BSUoS reform and the further modifications to deliver Access and for the TCR (on complex sites) will continue.
This is set out in Ofgem's open letter here. A 1-page summary from the ADE can be found below.
Download FINAL ADE Consultation Response Access And Fwd Looking Arrangements
Download DRAFT ADE Paper Broader Network Charging Reform
Download Member Briefing Final Decision On TCR2
Download FINAL ADE Response CMP343 Ofgem Minded To Decision
Download FINAL ADE Response Access Minded To Aug 2021
Download FINAL ADE Response Tnuos Cfe Nov 21
Download Briefing Overview Of Network Charging Reforms Feb 20221
Download 2022.04 .07 Network Charging Workshop
Download FINAL ADE Response CMP361 CMP362 2Nd Consultation
Download FINAL ADE Response Ofgem Draft Decision On CMP308
Download ADE FINAL Response De Scoping Duos From The Access SCR
Download FINAL ADE Response Ofgem Updated Access Minded To Positions
Download FINAL DCP 388 Response
Download ADE Briefing Access SCR Final Decision May 2022