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Electricity: Fees and Charges

Question for Department for Business, Energy and Industrial Strategy

UIN HL15786, tabled on 15 May 2019

To ask Her Majesty's Government what assessment they have made of the effect of Ofgem's Targeted Charging Review on (1) the deployment of energy storage, (2) the deployment of electric vehicles, and (3) the UK meeting the targets of the fourth and fifth carbon budgets.

Answered on

28 May 2019

Ofgem’s Targeted Charging Review is seeking to ensure all parties connected to the electricity network make a fair contribution to its fixed costs. As was outlined in the ‘After the Trilemma’ speech of 15 November 2018, it is important that we develop an energy system that discourages free riding and ensures a fair distribution of such costs.

Network charging is a matter for Ofgem as the independent regulator, and decisions on its Targeted Charging Review (TCR) are for it to make. However, Government is working to understand the policy implications of Ofgem’s review proposals across a broad range of interests. The analysis published by Ofgem as part of a consultation which closed on 4 February 2019 shows that its proposals could affect the deployment of a number of technologies, but with a low likelihood of affecting measures already taken. It is important to understand that no final decisions have been taken on timing or other aspects of the TCR, and Ofgem is currently considering the views and evidence provided in response to its consultation.