Energy Supply

(asked on 7th July 2020) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he has made an assessment of the effect of changes to the level of energy operator (a) transmission and (b) connector charges on the development of localised electricity grids.


Answered by
Kwasi Kwarteng Portrait
Kwasi Kwarteng
This question was answered on 15th July 2020

Network charging is a matter for Ofgem as the independent regulator. Ofgem is leading two major charging reforms: the Targeted Charging Review; and Access and Forward Looking Charges Significant Code Review (Access SCR). Collectively, this programme of work seeks to ensure that regulatory and market arrangements reflect and enable the energy system transition, as we move towards net zero emissions, and that consumers benefit from the changes.

The Access SCR is most relevant to localised electricity grids. It seeks to ensure electricity networks are used efficiently and flexibly, reflecting users’ needs and allowing consumers to benefit from new technologies and services while avoiding unnecessary costs on energy bills. Ofgem published illustrative examples to help explain the potential benefits of its reforms to different users, including a wind generator and local energy scheme (available at: https://www.ofgem.gov.uk/system/files/docs/2019/12/winter_2019_-_working_paper_-_illustrative_examples_note_publish.pdf). It will be publishing a full impact assessment, alongside its minded-to decision on its proposed changes under the Access SCR, later this year.

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