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Targeted Charging Review update

7th August 2020

Ofgem has now delayed the introduction on transmission for a year and now both charges will come into effect from 1st April 2022

At the beginning of the year, Ofgem’s charging reviews had already highlighted some important changes in the way Transmission and Distribution charges would be raised in the future.

We have previously explained that both Transmission and Distribution residual charges will be replaced by fixed charges. Initially, it had been planned for the changes to effect Transmission charges from 1st April 2021 and Distribution charges from April 2022.

Ofgem has now delayed the introduction on Transmission for a year and now both charges will come into effect from 1st April 2022. However, banding and associated costs will still be allocated this year and it is now even more imperative to put a plan in place.

Inenco has been highly involved in the industry workgroups developing the changes and have lobbied hard on behalf of customers to try to ensure the charging regime is fair and that sufficient safeguards exist to ensure customers are not unfairly treated when it comes to allocating the new charges. We are the only consultant to have responded to the various consultations which have been issued and are at the forefront of attempting to influence the direction of these changes.

Those customers who are applicable and have taken up our Review and Recover service will be investigated and advised on what action they need to take to optimise their position in advance of the new banding publication and lay the groundwork for the appeals process should that prove necessary.

But it is not too late to act. Although the bandings will be announced later this year there is still work which can be done to facilitate an appeal in many cases and our Review and Recover service will investigate and highlight these where they are applicable.