Peak Pique: Ofgem’s Network Charging Changes

Ofgem has confirmed major changes to the way businesses pay to use the power networks. The Energyst asked consultants and end-users for an impact assessment.

Ofgem’s changes to network charges will have a major impact on business energy bills, particularly for larger power users that have traditionally reduced peak demand through loadshifting.

For some, the annual cost could run to seven figures. Water companies, for example, try to minimise grid draw during winter evenings, because their transmission charges are based on their usage during the three highest winter peaks (Triad charges, with Triad periods confirmed retrospectively).

Carrying excess capacity will become increasingly expensive. Customers with very ‘peaky’ consumption will suffer the most from this and should consider solutions such as battery technology to smooth peaks, although the business case for doing this will remain unclear until the rates of the new charges are released.

James Summerbell, Managing Director, Sustainability Services Europe at ENGIE Impact

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Peak Pique: Ofgem’s Network Charging Changes Set To Bite

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