TRIAD – Delay Creates Opportunity

TRIAD – Delay Creates Opportunity

Dear Member,
TRIAD’s are here to stay for one more year, which is great news for those who can react to the warnings and shift demand.
Many of you may have been aware from the TEC Conference that there were some changes coming to the way that Transmission Network Use of System (TNUoS) and Distribution Use of System (DUoS) are charged in April 2021 and April 2022 respectively. The changes came under the title of Targeted Charging Review (TCR) and are designed to change the way that they collect revenue so that the tariffs:
1. Significantly reduce the incentive for customers with on-site generation or demand response capabilities*
2. Ensure customers of a similar type pay the same price towards network costs
* The changes do not remove the existing TRIAD warnings for TNUoS, nor does it remove the Red, Amber, Green DUoS warnings. However, it does significantly dampen their effect on costs.
It was however announced on the 31st March 2020 that the changes to the TNUoS charging via the TCR, will now be delayed until April 2022.
Why has it been pushed back?
In essence it is the lack of clarity on the Transmission Demand Residual (TDR) charges from April 2021. This has been caused by the lack of accurate charges for April 2021 not being available until late 2020, due to the new data requirements of the new charging structure and code modification timeline.
Secondly, there is an increasing view in industry that the timeline for implementing the TDR reforms contains significant risks, and there is a growing concern these will not be delivered on time.
How does this affect TEC Members?
It means that the forecasted charges for TNUoS starting in April 2021 will now not take place.
However, due to the freshness of this information, we will need to update your budget position in View. We will work on this and you will see a system notification when complete.
If you have any questions about TCR or any other industry charges, please give your Member Services Advisor a call.
Kind Regards,
The TEC Team