Ofgem has delayed killing off Triad avoidance until 2022.
The regulator had intended a new charging methodology to come into force in 2021, but National Grid ESO asked for an additional year.
The system operator and energy suppliers were concerned that clarity over the new banded charges would come too late in the year, leading to contracting issues. IT system changes would also be rushed which could compound problems, they argued.
The changes – which will move the residual element of transmission network charges (TNUoS) from demand to a fixed charge based on a site’s available capacity, or recent annual demand – will now take effect from April 2022, in line with similar changes to distribution charges.
Companies that load shift over winter to reduce their bills – known as Triad avoidance – will welcome the move.
Details here.
Related stories:
Peak pique: Ofgem’s network charging changes set to bite
TCR: Triads and tribulations for large energy users
Firms that can loadshift ‘will only gain’ from death of Triad
Ofgem: DNOs must progress with flexibility and DSR this year
Charging reform ‘key to unlocking DNO flex’
TCR: Triads and tribulations for large energy users
Ofgem confirms plans for new network charges
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