More fixed cost changes – Some good, some bad
Following a recent change to the Distribution Network Operators’ (DNOs) licence conditions, the networks now have to give customers and suppliers 15 months’ notice of final Distribution Use of System (DUoS) charges, instead of just 40 days’ notice.
The change meant that the networks published two sets of final charges in December 2015, covering both April 2016 to March 2017 and April 2017 to March 2018. Effectively, this has ‘fixed’ charges for the next two years, with the aim of helping customers plan ahead and manage their energy costs more effectively.
For some time, forecasts for Transmission Network Use of System (TNUoS) charges have taken into account the closure of Longannet in Fife, one of Europe’s largest coal-fired power stations.
In February 2016, National Grid published its final TNUoS charges for April 2016 to March 2017 and, as predicted, Longannet’s closure in March 2016 has had a big impact (especially in Scottish and Northern regions). It means that National Grid loses out on revenue from generators, which it then has to recover from customers, increasing TNUoS charges.
It isn’t good news, but for anyone not with Zenergi and on pass through contracts, they can expect to see some surprise additional charges arriving once these filter through.