Distribution Use of System charges update
Distribution Use of System (DUoS) charges and Transmission Use of System (TUoS) charges, set annually by Distribution Network Operators, are set to increase from 1st April 2024, impacting electricity bills.
The impetus behind these changes stems from the Targeted Charging Review, a comprehensive evaluation aimed at revising the mechanism through which costs associated with operating distribution and transmission networks are allocated among end-users. Recognising the need for a more equitable approach, stakeholders within the industry have been working to implement adjustments reflective of actual usage and infrastructure demands.
With the forthcoming changes, that will take effect from 1st April 2024, consumers can anticipate a shift in DUoS and TUoS tariffs. Specifically, there will be an increase in fixed charges compared to the levels observed in 2023. Unlike variable charges, which may fluctuate based on consumption patterns, these fixed charges remain consistent and cannot be circumvented through competitive tendering or alterations in procurement strategies.
The exact impact on costs will vary between regions and will depend upon the characteristics of the incoming supply.
