The UK electricity system is rapidly changing. Following a radical increase in the amount of renewable generation, we are now seeing the growth of smart technology and services that can enable more flexibility in the way we generate, supply and use power. The National Infrastructure Commission has responded to these changes by calling on the UK to lead the world in a 'smart power revolution'.
The grid charging regime has a key role to play in encouraging the most efficient use of the networks; to enable the decarbonisation of the power system and continued security of supply at the lowest cost.
The purpose of this paper is to consider what the principles of a future network charging regime should be, in order to create a regime that is fair to network users, but also supports the transition to a smart and more flexible energy system. It is hoped this paper will contribute to the Smart Power consultation, wider discussions on the value of flexibility and shorter term proposals on embedded benefits. Our approach is to set out the direction of travel for the electricity system, the current charging regime and the reasonswhy there is a need for change. We then propose principles for reviewing charging in a rapidly changing system.
