Energy: Finance

(asked on 18th March 2019) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect of the timing of Ofgem's Targeted Charging Review on (a) the deployment of distributed generation technologies, (b) businesses with onsite generation and renewables and (b) the transition to a low carbon, flexible energy system.


Answered by
 Portrait
Claire Perry
This question was answered on 26th March 2019

Ofgem’s Targeted Charging Review is seeking to ensure all parties connected to the electricity network make a fair contribution to its fixed costs. As was outlined in the ‘After the Trilemma’ speech of 15 November 2018, it is important that we develop an energy system that discourages free riding and ensures a fair distribution of such costs.

Network charging is a matter for Ofgem as the independent regulator, and decisions on its Targeted Charging Review are for it to make. However, Government is working to understand the wider policy implications of their proposals across a range of priorities, and expects Ofgem to take decisions in line with their primary duty to protect current and future consumers. The regular discussions which Ministers and officials have with Ofgem and other stakeholders are supporting our consideration. The analysis which Ofgem published as part of its recently closed consultation shows that the proposals could affect investment decisions across a number of technologies, but no final decisions have been taken on timing or other aspects.

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