How will the Targeted Charging Review (TCR) affect your business?
07 Oct 2020
Published in: Member News
From April 2022 all businesses will see a change in their non-commodity electricity charges.
From April 2022 all businesses will see a change in their non-commodity electricity charges - in layman's terms their non-energy costs. In particular, the current Triad system will be replaced with a fixed-cost banded voltage charging system.
Why are the reforms being implemented?
Ofgem announced the reforms in 2017 in a bid to create a fairer energy network, the purpose of the TCR is to ensure network charges are cost-reflective and paid by the relevant parties.
What does this mean?
Businesses with Triad avoidance strategies in place will no longer be able to avoid the higher charges, as the system moves to a fixed-rate model. And for the few businesses who made additional revenue through exporting on-site generated electricity during Triad periods, they will see their benefits withdrawn completely or at least very severely.
What can you do?
All businesses with a Half Hourly metered supply will be affected and action needs to be taken now to reduce any liability and / or maximise the savings opportunity because the measurement period has already started.
Those most affected by the new legislation are UK Manufacturing businesses, using in excess of 2GWh of electricity per annum (about £250k spend).
If your business is spending £250k+ on electricity and you’d like a free of charge TCR Impact Report to gain a better understanding of how the changes will affect your business, contact Natacha Churchward at firstname.lastname@example.org or 07935 755648.
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