Ofgem’s Targeted Charging Review (TCR) initiative aims to modernise the electricity network and transform the management of the National Grid.
The changes which address the way Distribution and Transmission charges are allocated are expected to save consumers between £4-5bn over the period to 2040.
Despite the ambitious cost saving forecasts, the move isn’t without controversy. The Transmission charges alone could see thousands added to the cost of business’ electricity bills. Critics from the renewable energy sector argue the reforms present a major obstacle to the future of solar and wind power deployment, and undermine the business case for solar PV and batteries.
Recently Ofgem announced that the Transmission charge reforms would enter consultation with a view to delay their introduction until April 2023. The changes to the Distribution charges will still be introduced from April 2022.
For many, the expected delay in...