TARGETED CHARGING REVIEW
Targeted Charging Review (TCR)
Following a review, Ofgem are to replace Transmission Network Use of System (TNUoS) charges with a new charging mechanism called Targeted Charging Review (TCR) which will be based largely on overall set supply capacity as opposed to charging against usage during periods of peak national demand during winter (TRIAD charge)
When does TCR come into effect?
From April 2021 the residual charges element of TNUoS will be moved from Triad demand to a fixed charge, based on site available capacity. From April 2022 DUoS charging structure will change to place more emphasis on a fixed charge based on available capacity with a smaller element of time-of-use charging remaining.
What does this mean in terms of cost?
This will mean that whilst some organisations will potentially benefit, others will likely pay considerably more, particularly those companies with effective TRIAD avoidance strategies (switching to a generator or moving supply during predicted periods to mitigate charges). There are a number of things that can be done in preparation for this imminent change to help minimalize and manage expenditure.
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