Targeted Charging Review

(TCR) 

The way we generate and use Electricity is changing, so the government is reviewing how network charges are collected, with an added focus on recovering a fair share from each customer. This will have a big impact on how suppliers work out your quote.

Energy suppliers are going to be charged differently by the network providers for TNUoS (Transmission use of system) and DUoS  (Distribution use of system) charges from April 2022.

These charges are currently included in your unit rate. The current system allows some consumers to reduce their electricity demand at peak times in the winter to avoid paying these high charges.

Going forwards, these costs will be a fixed charge on your bill and customers will be placed into bandings. The bandings will determine how much you contribute towards the TNUoS and DUoS costs. The bandings will be based on the size of your electricity demand and usage.

The cost is split into two parts.

1) Residual

This is the cost of maintain the electricity network.

2) Forward looking

The cost of expanding the electricity network.

This change only affects the residual cost element, which is 90% of the TNUoS and 50% of the DUoS cost.

These changes are going to have a big impact on how suppliers price. All suppliers will have a different approach to how they recover these costs from customers. This means quotes could look very different.

 

From April 2022 we expect the unit rate to come down but certain fixed charges on your bill will go up. That is why it is so important to have the right information, quote comparison and guidance when making your decision. We don’t want any customers being hit by unexpected charges.

 

Balanced Energy will continue to engage with suppliers and provide updates. We are more than happy to discuss how we can support you.

01392 949 949

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Balanced Energy Ltd

Company Registration Number: 13000304, Registered Office: 7a Dartmouth Road, Paignton, Devon, TQ4 5AA

VAT Number: 365537278

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