Policy Impacts

Get to grips with major new changes to energy charging

Posted on 16 January 2019
By Helen Inwood
Helen Inwood
Non Commodity Charging Manager

Helen currently leads a team who are responsible for the forecasting of Non-Commodity Charges for costing purposes, with a main focus on understanding and influencing the regulatory changes that affect these costs.

I’m sure we don’t need to tell you that buying energy is a complex business. As well as the basic (but volatile) commodity, there are myriad other charges that make up the final bill – and it’s proposed changes to key elements of these that are creating confusion among many large business customers.

Indeed, our own network and non-commodity charging experts have spent many days getting to grips with the proposals contained in Ofgem’s latest Targeted Charging Review update.

But now they have a clear view of what’s proposed – and more importantly, what the likely outcomes for energy consumers will be – they are ready to share their insight in our forthcoming ‘Targeted Charging Review: The Likely Winners and Losers in Energy Charges Shake Up’ webinar.

Will you be a winner or a loser?

As expected, the proposed changes to key charges such as Transmission Network Use of System (TNUoS) and Distribution Use of System (DUoS) will benefit some consumers and penalise others.

Large consumers who currently manage demand around peak charging periods are likely to lose out.

For example, basing TNUoS charges wholly on consumption during the three Triad half hours of peak demand from November to February is set to end.

For DUoS, a higher fixed (or capacity) charge is proposed, with reduced time of use charges. Again, this means a lower benefit for reducing consumption at peak times.

Charges and credits for embedded generation are also likely to change. For example, a Balancing System Use of System (BSUoS) charge may be levied – instead of the credits some currently receive.

Clarity in just 60 minutes

To make sure you understand what’s likely to happen and when – and how this will impact your business’s energy costs – join our webinar at 10am on Friday 1 February. It’s free for consumers and all you need do is register in advance here.

Our aim is by the end of the hour, you’ll be clear on forthcoming changes to key charges such as TNUoS, DUoS and BSUoS, which together make up a sizeable share of your bill.


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