Targeted Charging Review (TCR): three words that have frustrated business owners and professionals responsible for business energy for numerous years.
Finally, after years of stumbling blocks and delays, April 2023 will see the rollout of TCR. In the following piece, we discuss how the changes will be implemented and where businesses can monitor the effect on their bills.
What is TCR?
Two of the non-commodity costs on business’ electricity bills, itemised as TNUoS (Transmission Network Use of System) and DUoS (Distribution Network Use of System), are being removed and re-distributed in other charges.
Ofgem (Office For Gas and Electricity Markets) has introduced this due to uneven distribution of these charges between large and small business consumers. This is partially due to load-shedding strategies employed by larger consumers, which means they are not contributing equally to maintenance of the country’s electricity network.
What are the changes?
Following two years of delays, TNUoS changes will come into effect in April 2023, whilst DUoS were already implemented in April 2022.
The new TNUoS charges will be banded based on a business’ agreed supply capacity (ASC), also known as its kVA, and applied through other areas of the bill. At Great Annual Savings Group (GAS), we’re increasingly finding that these are being applied through the standing charge in the short term by most suppliers.
Both TNUoS and DUoS replacement charges are dependent on region and applies to businesses on non-half-hourly supplies as well as larger half-hourly consumers.