The way we generate and use Electricity is changing, so the government has reviewed how network charges are collected, with an added focus on recovering a fair share from each customer. There will be winners and losers. The system allowed some consumers to reduce their demand at peak times in exchange for lower network charges. This does place an additional financial burden on those that do not. There is now a greater emphasis on fixed charges, based on the type of customer, metering and expected use. Banding will be whether domestic, unmetered, and for business customers, total volume or Available Capacity.
Transmission charges were due to change April 2021, potentially moving away from being collected via the consumption-based Triad periods. Due to delays in issuing guidance to energy suppliers, this will start April 2023. Distribution charges have a greater element of fixed costs, but will still use Red, Amber and Green, effective from April 2022.
Potentially from April 2022 Electricity suppliers could have reviewed the Distribution charges for fixed price contracts. They may for Transmission from April 2023. From April 2023, Balancing (BSUoS) costs will be 100% recovered on Electricity invoices, rather than the current 50% from generators.
Indigo Swan will continue to engage with suppliers and provide updates. We are more than happy to discuss how we can support you.
Changes to Transmission charges from April 2022
Changes to Distribution charges from April 2022
Greater emphasis on fixed costs
Intention of being fairer
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