Allocation of banding for TCR Charges for ‘Peaky’ Final Demand Customers

The recent reform of residual charges through the Targeted Charging Review (TCR) and subsequent DCUSA Change Proposals (such as DCP360) has led to an unintended consequence whereby customers with low annual consumption, but with high-capacity requirement needs are seeing bills that are overly excessive on the basis that such customers residual costs are allocated based on the Agreed Supply Capacity (ASC) over both Distribution & Transmission Use of System charging.

For such customers the new fixed residual charge is based on connection agreements which in most cases the ASC reflects as a regular anticipated peak capacity. However for others, this peak capacity is very infrequently used and most of their demand is at significantly far lower levels of maximum capacity requirements.

In order to remove this new distortion, this change proposal recommends allowing ‘peaky’ customers to be re-banded to the next lowest TCR band.