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Ofgem’s Targeted Charging Review (TCR) will reform how the residual element of transmission and distribution network charges are set and recovered. Subject to Ofgem’s decision later this year, the implementation of a new charging structure may be delayed from 1 April 2022 to 1 April 2023. All non-domestic customers, except unmetered supplies, will be allocated to fixed charging bands based on the voltage of connection and average annual consumption/maximum installed capacity over a 24-month period. Non-domestic MPAN Line Loss Factors (LLFs) will change to indicate new charging bands.
There is no direction on how these charges should be treated in fixed price contracts that extend beyond the implementation date. Suppliers should consider what approach to take, while brokers should engage with suppliers to confirm their approach.
Charging band allocation will be fixed for a 5-year period unless there has been a material change on site (e.g., more than 50% increase or decrease in annual consumption/maximum installed capacity). There will be a short window in advance of the implementation date for customers to dispute their charging band allocation. Suppliers and brokers should advise their non-domestic customers to review the annual consumption/maximum installed capacity in advance of the dispute window to ensure correct band allocation.
As the industry prepares for these changes all electricity suppliers and brokers are required to convert existing MPANs for non-domestic customers except unmetered supplies. MPAN Line Loss Factors (LLFs) will change from numeric to alphanumeric format.
Electricity suppliers and brokers are encouraged to go to https://enpaas.com/free-mpan-converter/ to access a free tool which will help avoid several hours of efforts to convert MPANs manually, one-by-one. Enpaas has developed this simple tool for the industry and is sharing it with everyone at no cost as their goodwill gesture. Simply download the MPAN spreadsheet template, add your MPANs, upload it and the conversion tool will email you a spreadsheet of MPANs with new LLFs and charging bands almost instantly. There is no limit to the number of MPANS submitted.
Join several energy suppliers and brokers/TPIs to take advantage of the free tool by Enpaas.
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