Elexon’s Response to Ofgem’s Consultation on Refined Residual Charging Banding in the Targeted Charging Review

Summary

Elexon’s response sets out how a BSC-based solution would work to enable fixed residual charges. We also note a number of areas which we believe require further consideration before Ofgem makes its final decision on its Targeted Charging Review proposals. These are:

  • Timing – We believe that industry may not have the capacity to implement the necessary changes by April 2021, given the current change pipeline.
  • Interaction with other projects – Ofgem should take opportunities, where possible, to develop common ‘whole system’ solutions and to minimise the risks of competing projects.
  • Definitions – The proposals would benefit from greater clarity, e.g. in the definitions of ‘final demand’ and ‘site’. 

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