Targeted Charging Review

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Next Stakeholder events announced - sign up now

Ofgem invite you to attend a stakeholder workshop on the Targeted Charging Review.

The workshop will be an opportunity to discuss the scope of Ofgem's working paper and debate with industry participants on how they intend to proceed with their Significant Code Review, the Targeted Charging Review.  

This event will be held between 10.00 – 15.30 on 15 November in Glasgow and 30 November in London. Both sessions will follow the same agenda. Further details including an agenda and venue location will be available to registrants before the workshop.

Please note that due to limited availability, only one person per organisation is permitted to register.

 Sign up to the workshops here.

Note published on November workshops

Following the last stakeholder workshops that were held in November 2017, Ofgem has released a note that sets out to capture the overarching conclusions and views of those attending the workshop.

 Please find the note here.

 

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A Significant Code Review

In August 2017, Ofgem launched a Significant Code Review (SCR) as the process to drive forward the Targeted Charging Review. The SCR was launched to address their concern that the current framework for residual and cost-recovery charging may result in inefficient use of the networks and unfair outcomes for consumers. 

The Targeted Charging Review is looking at how electricity network residual charges should be set in future, for both transmission and distribution. The principles Ofgem are proposing to use to assess potential changes are:

1. reducing distortions 

2. fairness

3. proportionality and practical considerations.

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TCR Options Paper

Ofgem published a working paper (‘Targeted Charging Review: update on approach to reviewing residual charging arrangements’) in November 2017. In this paper Ofgem discusses their collected thoughts on how they intend to resolve the current framework for residual charges before outlining their proposed approach and justifications to their decisions.

  • Ofgem believe that residual charges should be recovered from suppliers, rather than generators or a combination of suppliers and generators.
  • Ofgem are proposing to take forward four in depth assessments of mechanisms for residual recovery to detailed quantitative assessment (fixed charges, capacity demand charges, gross consumption charges and baseline charges).
You can find the working paper here.
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Stakeholder Events

Ofgem held two stakeholder workshops in November 2017 after the working paper was published to allow industry an opportunity to feed in views and to discuss the Targeted Charging Review working paper. Ofgem have since released a note on the workshops.

You can find the note on the workshops here.

 

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The Future of the TCR

There will be further stakeholder events held in April 2018 which will be an opportunity to discuss Ofgem's proposed user groups, which will be used for their distributional impact work, and feed in views to further their analytical work that they intend to undertake to support their minded to decision.

Second workshop: 17 & 19 April 2018 - sign up to attend.

Ofgem will publish a consultation on the Targeted Charging Review in Summer 2018.

For more information, please see the guidance note on the TCR here.