Fixed charges are to be applied to all final demand network users irrespective of their ability to reduce their impact on the grid through generation or flexibility under Ofgem’s preferred strategy for its Targeted Charging Review (TCR).
Ofgem has set out its plans to overhaul the charging arrangements of the UK energy system to allocate more costs to distributed generation to reflect the ongoing changes in the sector.
Ofgem stressed that it will need the help of industry if it is to strike the right balance between enabling the energy transition and keeping costs to within acceptable limits, as it designs the second set of network cost controls.