When is the right time to secure your energy 2023 - Flipbook - Page 6
What is the Targeted Charging Review (TCR)?
The Targeted Charging Review (TCR) is a regulatory scheme introduced by the UK energy regulator, Ofgem, to reform how electricity
grid usage charges are levied. The TCR aims to create a fairer and more sustainable system for charging for the use of the electricity
grid in the UK, while also ensuring that costs are allocated in a way that reflects the fluctuating nature of energy generation and
consumption.
The TCR is being introduced in response to several challenges facing the UK electricity market, including the growth of renewable
energy generation, the increasing use of distributed energy resources and changes in the way that consumers use and interact with the
grid.
How does the TCR affect non-commodity costs?
TCR changes introduced in April 2022 now mean that non-commodity charges will no longer be based on peak-time consumption and will
instead be based on a standard flat rate.
Overall, the TCR is a key step towards creating a more sustainable and efficient electricity system in the UK and is likely to have a
significant impact on the way that consumers, generators, and other stakeholders interact with the grid in the years to come.
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