Targeting Charging Review (TCR)
TCR covers both Transmission Network Use of System (TNUoS) and Distribution Use of System Charges (DUoS), and looks to ensure that overhead costs the network companies face in running of the network are recovered under a charging structure that is fair. These overhead costs are referred to as residual costs and will be recovered through a fixed charge.
TNUoS is the National Grid’s costs for delivering electricity to the local network. DUoS the local network’s charge for bringing electricity to the meter.
Part of the TCR delayed by a year
On Thursday 1st April 2021, Ofgem announced that the planned implementation of changes to the residual charges for TNUoS – under its TCR reform package - was being delayed by 12 months from April 2022 to April 2023.
The changes to DUoS will go ahead as planned on 1st April 2022.
So, what does the delay mean?
Those customers who are able to actively avoid triad periods will have a further year to do so.
It would also mean that the transitional cost that was due to occur from a change of charging methodology, is also to be delayed by a year. This will give greater budget certainty until at least April 2023.
So, when will TCR be implemented?
The letter from Ofgem, which you can download here, states that full implementation is now forecast for April 2023. Some businesses will be facing some significant variances to their charges and we are well placed to guide you through those changes.