Ofgem launches review for fairer and cleaner electricity prices

The review aims to examine the methodology behind distribution charges, with a focus on supporting competition and reducing carbon emissions

Ofgem has announced that it is going to review how charges are applied for distributing electricity across the network.

This is called the Distribution Use of System (DUoS) review.

The aim is to see if the way these charges are calculated can be improved so that they are consistent across the network and support competition and efforts to reduce carbon emissions.

Ofgem will look at how these charges can be set fairly to encourage efficient use and development of the network and explore ways to make them more accurate based on usage, time of use and location.

The review will also consider how predictable these charges are. The regulator wants to ensure that the charges are practical and proportionate and take into account the fact that electricity is an essential service.

Ofgem had paused work on the review in November to focus on resolving the energy crisis during winter.

However, with the implementation of some changes to the way the network is accessed, it can now resume the review.

The review is important because DUoS charges make up a significant part of the cost of electricity supply.

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