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Ofgem unveils delayed timeline for TCR implementation

Image: Ofgem.

Image: Ofgem.

Ofgem has appeared to knock back the implementation of proposed reforms to network charging under the controversial Targeted Charging Review (TCR).

In a letter to stakeholders today, Ofgem confirmed that it was leaning towards the later dates in its proposed implementation of any reforms.

With regard to reforms of embedded benefits, having originally stated that it was considering whether or not to implement reforms by either April 2020 or April 2021, the regulator has today all but ruled out implementing them next year, confirming April 2021 to be its preferred option.

The regulator has also proposed a new timeline for implementing changes to residual charging. Ofgem initially proposed to either implement them in full on April 2021 or phase them out between 2021 and 2023, but it is now including a complete phase out in April 2023 as another leading option.

It has too proposed a slight change to how network access reforms could be implemented, and is considering implementing changes to both transmission charges and distribution arrangements at the same time in April 2023.

Authoring the letter, Ofgem’s deputy director for electricity charging and access Andy Burgess, said the regulator was taking an holistic review of network charging.

The TCR has proven to be a highly contentious set of proposals, and the letter comes soon after the reforms have come under intense scrutiny.

Analysis by both economic consultancy Oxera and energy research firm Aurora have criticised elements of the proposals, claiming that their respective analyses have identified that the reforms could significantly hinder renewables developments and end up having counterintuitive results.

Having published its minded to decisions last November, Ofgem is due to unveil its decisions in a policy paper published next month.

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