Energy: Charities
The question
To ask the Secretary of State for Energy Security and Net Zero, whether he has had discussions with Ofgem on the potential impact of the RIIO-3 Transmission Network Use of System charges on the charitable sector; and if he will consider the potential merits of extending energy-intensive exemptions or relief schemes to registered charities operating high-energy community facilities.
Answered by Michael Shanks
Electricity network charging is a matter for Ofgem as the independent regulator. Transmission Network Use of System (TNUoS) charges recover the fixed costs of maintaining and expanding the high-voltage network, and are paid by all network users.
Recent TNUoS increases reflect essential transmission investment agreed under the latest price control (RIIO-3). Ofgem has assessed the impact on domestic and non-domestic consumers and expects the benefits to outweigh the costs by the end of the period — see the RIIO-3 Final Determinations Impact Assessment.
The relief schemes referenced are limited to foundational industries at risk of carbon leakage or frontier manufacturers, to support international competitiveness.
Over the longer term, Ofgem is conducting a holistic review of how energy system costs should be paid for. Their most recent update regarding this review can be found here: Energy system cost allocation and recovery review - Ofgem - Citizen Space.
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