Electricity: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, if he will amend the electricity fixed-cost banding rule to permit evidence-based band migration based on actual usage and capacity within the permitted band limits.
Answered by Michael Shanks
By law, network charging is a matter for Ofgem, the independent regulator.
Fixed charge banding rules, including migration, are set out in the DCUSA industry code (Schedule 32). They limit migration to exceptional circumstances, including significant change in capacity or consumption. There are some proposals to change banding rules (DCPs 412, 420, 454, and 466), which will be subject to final Ofgem approval. The DCUSA Secretariat can provide information about these rules/ proposals.
Ofgem has launched the Cost Allocation and Recovery Review (CARR), which is assessing whether there are more efficient and fairer ways to allocate and recover system costs.
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