20 September 2016

Smart power revolution at risk from ‘tinkering’ with grid charging

The smart power revolution is being put at risk by tinkering with charging for use of the grid instead of carrying out a full review, according to a new paper launched today by energy experts Regen SW. The report “Network Charging for a Flexible Future” sets out proposed principles for how charging for the grid should be reformed.

The report comes as Ofgem consults on charging for local energy generation, known as embedded benefits and the Department for Business, Energy and Industrial Strategy (BEIS) and Ofgem plan a broader review of charging as part of its work to take forward the National Infrastructure Commission ‘Smart Power’ report.

Merlin Hyman, Regen SW chief executive commented:  “As we transition towards a more decentralised, flexible power system based on renewable power, the way we charge people to use the electricity grid sends critical signals to investors and businesses. Our new report sets out our view of the principles for a charging regime that is fit for the future.

We welcome Ofgem’s commitment to a full review of network charging and urge them to avoid tinkering with embedded benefits until this full review has been undertaken and widely consulted on.”

The paper proposes principles for a holistic review of charging including:

  • ensuring grid charging is aligned with other energy policies to meet the UK governments long term decarbonisation and energy security objectives
  • supporting innovation and the development of new technologies and business models
  • encouraging network balancing by strengthening the locational and temporal signals
  • and ensuring the charging regime is transparent and charges are visible to all customers.

A copy of the report is available here.

Author: Tamar Bourne

Contact: tbourne@regensw.co.uk


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