Energy UK publishes Electricity Charging Arrangements Report
UK’s electricity system has undergone significant changes over the past 20 years. The system was built on the premise that large power stations were connected to the transmission network and customers were connected to the distribution networks.
Energy UK’s report looks at the changes in the electricity system and how they affect the charging model. The report makes recommendations based on seven key principles and calls for a holistic review of the charging system to avoid market distortion and higher costs for energy consumers.
It covers the following topics: Distribution Use of System (DUoS), Transmission Network Use of System (TNUoS), Balancing Services Use of System (BSUoS), Connection charging (transmission and distribution), Net vs Gross charging, Capacity Market Supplier Levy, Triad and Green policies.
Energy UK said:
“The current charging system is no longer fit for purpose. Ensuring the charging arrangements are appropriate for today’s energy system is important to allow for efficient investment and fair charging for customers. There are short term changes that may improve the current charging regime but it is important that a holistic review of all charging issues is carried out in the near future.”
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