P402: Enabling reform of residual network charging as directed by the Targeted Charging Review

Formal title: Enabling reform of residual network charging as directed by the Targeted Charging Review

Following the conclusion of its Targeted Charging Review Significant Code Review , Ofgem directed National Grid and certain LDSOs to make changes to how residual revenues are recovered through Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) demand charges.

The Balancing and Settlement Code (BSC) currently ensures the provision of data that NETSO and LDSOs use to calculate TNUoS, Balancing Services Use of System (BSUoS) and DUoS charges.

ELEXON understands that the LDSOs have or can procure all data necessary to implement the TCR SCR changes in relation to demand residual charging. However, NETSO does not have access to the relevant data. This is because the NETSO relies on BSC processes to ensure it receives data it uses to calculate TNUoS and BSUoS charges. The data currently reported by BSCCo to NETSO is insufficient to enable the changes required for the TCR.

The Proposer believes the BSC must change in order that it ensures the provision of data that enables the NETSO to set and recover TNUoS demand residual charges in accordance with the TCR SCR decision.

P402 will introduce new reporting requirements on LDSOs and BSCCo that will ensure the provision of data to enable the NETSO to set TNUoS demand residual tariffs and enable accurate billing of subsequent charges.

In summary this proposal consists of the following new reporting requirements:

  • For Tariff Setting and forecasting – a new process requiring LDSOs to report historical ‘Final Demand Import’ data[1] (and associated losses) and a snapshot ‘site’[2] count to BSCCo in October and December each year; BSCCo will then aggregate the LDSO data into a consolidated report and send it to NETSO in October and December each year; aggregated Import data and site counts will be split by GSP Group and by ‘Residual Charging Bands’[3];
  • For Billing – a monthly process requiring LDSOs to send BSCCo a report containing a daily count of SVA sites registered to each Supplier, by GSP Group and by Residual Charging Band; BSCCo will then aggregate the LDSO data into consolidated monthly reports and send it to NETSO.

In addition, pending the outcome of CMP335 ‘Transmission Demand Residual – Billing and consequential changes to CUSC Section 3 and 11’, NETSO may require that Non Half Hourly (NHH) Unmetered Supply (UMS) Imports are separately reported. That is, the P0210 TUOS Report currently combines NHH UMS Imports with normal metered NHH Imports and the TCR SCR solution may require that UMS Imports are charged for separately from other activities.

Current Status

Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Awaiting Implementation


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