Ofgem’s Targeted Charging Review proposes drastic changes to the way electricity network users on both the demand and generation side pay for this infrastructure. On the demand side, the proposal to switch from network charges based on electricity usage to a fixed charging regime risks penalising the proactive households and businesses that have invested in rooftop solar PV generation, battery storage, and improving their energy efficiency, while delivering savings to the most profligate energy users. On the generation side, the proposal to charge distribution network-connected generators like solar farms for the cost of balancing the transmission network will similarly penalise local, flexible and zero-carbon generation, and reduce costs for industrial-scale power stations. This response from the STA details the specific errors in the modelling methodology used by Ofgem in justifying these reforms, describes their potential impact on the renewables sector, and proposes a better way forward for delivering consumer savings, decarbonisation, and an energy system fit for the future.
Please fill out the following form in order to access our response to Ofgem’s Targeted Charging Review.