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New challenges have forced National Grid to review transmission charges to ensure a “level playing field” for emerging technologies such as demand side response and battery storage.
A review of current arrangements is necessary to ensure value for money for customers while encouraging investment. Ofgem is already reviewing embedded benefits, but Grid said a wider review of charging is necessary.
National Grid’s head of charging and access arrangements, Nikki Jamieson announced the review in a blog on the company’s website.
She said the company needs to take a “fresh look” at current charging arrangements, including the Triad system, in the wake of “massive expansion” of renewable electricity.
Charges were last reviewed six years ago by Ofgem through Project TransmiT, which helped to facilitate the connection of low carbon generation.
But Jamieson said the charges now need to evolve “much further” so they cater for a broader range of challenges.
These include ensuring charges allow customers to benefit from moving their energy use after smart meters are introduced, while not disproportionately disadvantaging those that can’t, and levelling the playing with European counterparts.
The Energy and Climate Change Committee has already called on the Department for Energy and Climate Change to investigate the disadvantage UK generators face against European generators as the use of interconnectors is expanded due to the disparity in charges.
National Grid is hosting industry seminars in London and Glasgow this month to gather feedback to inform the future charging regime.
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