TNUoS Changes Delayed - Targeted Charging Review UpdateRegarding the latest TCR updates, some industry analysts suggest that Ofgem were trying to bury this market update, releasing it in the late afternoon on April fool’s day.
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Regarding the latest TCR updates, some industry analysts suggest that Ofgem were trying to bury this market update, releasing it in the late afternoon on April fool’s day.
However, Ofgem did issue an open letter on Thursday 1st April outlining its intentions to delay implementation of reforms to the Transmission Demand Residual (TDR) until April 2023.
The planned publishing of the CMP343 Transmission Demand Residual Bandings and Allocation is set to be released after the 6th May, however it expects that following this publishment that its minded-to position will be to delay implementation of the change by a year.
This new modification is proposing to create a new methodology for the residual element of demand TNUoS to be placed on final demand only.
Then further fixed charges based on a banding approach will be used on different customer segments.
It is not clear why this has been delayed; however, it is highly possible that a number of suppliers were unable to implement the required changes to their billing platforms for the planned start date.
Ofgem also hinted that generators will also need more time to adjust to the planned changes and that the new charges introduced under CMP343 with the proposed date of April 2022 may no longer be feasible.
This will come as a relief for some suppliers as it allows more time to build these new charges into old legacy billing systems that are difficult to adapt to these types of changes.
It also good news for energy intensive users as they will be able to take advantage of a reduction in Triad charges for another winter and avoid these winter peak demand costs.
TCR is still expected to be fully in place by April 2022, and all other parts remain unchanged.
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