Use of system charging for private networks with competition in supply

Without clarity in the charging methodology, there is a risk that Distributors will take different approaches, undermining the intended commonality of the charging methodologies.

Competition in supply on a private network does not alter the use of the Distributor’s network; hence the CP form asserts that the UoS charges faced by the multiple Suppliers involved when competition in supply is in place should sum to the same total as would be applied if a single Supplier were supplying the site as a whole.

When competition in supply is not in place (i.e. there is a single Supplier and one MPAN) fixed and capacity charges would be applied in respect of that single MPAN. Where competition in supply is in place (i.e. there are multiple Suppliers and multiple MPANs), if all tariff elements are applied in respect of all MPANs (as would be expected), multiple fixed and capacity charges would be applied. This undermines the equivalence in charges (which the CP suggests should be seen) faced by the single Supplier (where competition in supply is not in place) and the sum of charges faced by multiple Suppliers (where competition in supply is in place).