Network Charging
Network charging has become an increasingly high profile area within the electricity industry over the last five years. We are experiencing greater volatility in tariffs, new technologies and an increased focus on flexibility. The result is a regulatory framework that is constantly changing to keep up with the rapidly moving market. This has led to a complex regulatory regime which industry participants need to understand to be able to manage their costs effectively. Some of the key drivers behind these changes include:

• Increase in behind the meter generation
• Emergence of battery storage
• More private networks
• More intermittency in the generation mix
• A focus on local energy schemes
• Third party access to unlicensed networks
• Greater decentralisation of generation
• Take up of low carbon technologies such as Electric Vehicles
• Reduced system inertia
• More uncertain peak demand.
• Transition from DNOs to DSOs

These changes have led to a number of reviews within the industry which look increasingly likely to lead to fundamental change of how network charges are determined and structured. The Targeted Charging Review is coordinating the changes underway and Energy Potential are actively involved in this area. Andy Pace currently sits on the CUSC Panel as the consumer representative and also attends the Forward Looking taskforce that is looking at developing options to determine cost reflective network charges in the future.

Energy Potential has expertise in network charging both at transmission and distribution and can offer advisory services in this area. Andy Pace and Mo Sukumaran were involved in the development of the Common Distribution Charging Methodology (CDCM) and the Extra high voltage Distribution Charging Methodology (EDCM) which are the national charging methodologies used to set Distribution Use of System (DUoS) charges. Both Andy and Mo have chaired national industry groups including the Distribution Charging Methodology Forum (DCMF), Methodology Issues Group (MIG) as well as numerous working groups. 

Areas of work in which Energy Potential can offer services include:

• Commercial compliance with industry Codes (DCUSA, BSC, MRA, distribution licence, electricity act, etc)
• Understanding network charging at distribution and transmission
• Developing charging methodologies for licensed and unlicensed networks
• Reviewing regulatory change in network charging that may impact on your business
• Impact assessments for regulatory change (both qualitative and quantitative)
• Assistance in representing your company interests at industry forums and change modifications
• Expertise in benefits and risks of developing private networks
• Exploring the regulatory implications of moving from unlicensed networks to licensed