Following a request from National Grid ESO, Ofgem have announced a 12 month delay in the implementation of the Transmission Demand Residual charges element of the Targeted Charging Review (TCR) from April 2021 to April 2022, citing “an increasing view in industry that the timeline for implementing the TDR reforms contains significant risks, and there is a growing concern that accurate charges may not be delivered on time.”
These delays are largely due to lack of clarity of methodologies used to calculate the proposed tariffs and bandings, the relatively short period for suppliers to implement new IT systems and charging processes, and a desire to avoid disputes between suppliers and customers that have signed non-domestic contracts for 2021 and beyond that do not take account of the expected changes to TDR charges.
The proposed changes to Transmission Generation Residual and BSUoS will still go ahead in April 2021, as will the changes to Distribution Demand Residual Charges in April 2022.
At OPTIMA, we work with our clients to provide them with the UK’s leading energy invoice validation software and bureau services, performing over 100 checks on the calculations that make up their energy bills. We have always been able to validate all pass through charges and will ensure that all new charging methodologies are included. History has shown that some energy suppliers perform better than others, and our expectation is that over the next few years, these further changes in the billing process will result in more discrepancies and the savings identified for our clients will rise significantly.