Further Volatility In Electricity Delivery Charges On The Way

2nd April 2018
Paul Brooks


Already, 2019 looks set to result in a further increase in electricity delivery charges, with the indicative distribution and forecast transmission charges now published.

An increase to electricity bills will come in to force next month under DCP 228, which aims to revise how DUoS (Distribution Use of System) charges are calculated, so that they accurately reflect the costs incurred by network operators during peak and non-peak periods.

Now, 2019 is likely to bring a further rise in these charges too. The scale of increase will vary significantly across the UK, and 2019 will also see a continuation of the rebalancing in time-of-day charges. This is making it increasingly important to monitor and manage your electricity usage.

The indicative DUoS charges for 2019 have been released by all the Distribution Companies. Meanwhile, the corresponding forecast Transmission Network Use of System (TNUoS) charges for the same period have also been published.

What’s the impact on energy bills?

On average, DUoS charges are increasing 9%, while TNUoS is rising closer to 11%.

Smaller domestic consumers – Profile 1 customer types – are likely to see the largest overall increase in delivery charges, estimated at around 10%. Larger Half-Hourly (HH) businesses (Profile 00) are forecast to see a 4-6% increase.

While there was a small decline in charges around the start of the current price controls on distribution and transmission companies, these latest charges represent further increase in consumer costs.

Non-commodity costs (NCCs) are a growing proportion of overall energy costs, on course to account for over half of your electricity bill during this decade. With no way to reduce these unit charges, consumers will have to become even more careful about how they use energy in order to cut overall electricity costs.

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