TNUoS Review and Call for evidenceTNUoS Changes Ahead

TNUoS Review time as on the 1st October, Ofgem published a call for evidence on the Transmission Network Use of System (TNUoS) charges regime. The document covers issues previously highlighted by stakeholders and outlines the regulator’s current thinking on potential areas for reform.

The regulator has compiled views presented in related stakeholder engagements, including the Targeted Charging Review and Forward-Looking Charges Significant Code Review, to form general trends in the issues and areas of concern being brought to its attention.

It considers there may be sufficient need for a holistic review of the TNUoS review charging regime, as at this stage there has been no opportunity for specific formal discussion on solutions to such issues.

In support of the call for evidence, Ofgem has outlined its thinking on the issues highlighted by engagements and its initial suggestions for potential solutions.

The regulator contends that although the current model for the TNUoS locational charge fulfils the requirements in the Connection and Use of Service Code (CUSC) there may be need for change to the purpose and design of TNUoS review charges in light of trends including increased flexibility and proliferation of renewables as well as future market and consumer behaviour changes.

Cost-reflectivity is another area of interest, with the regulator suggesting there may be opportunities to improve how commercial decisions reflect on charges paid by users and thereby improve market competition.

Additionally, complexity of the charging methodology has been perceived as a source of unpredictability in charges experienced by some users. According to Ofgem, reforms that reduce this could ease volatility in the market and reduce barriers to investment.

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