Access Reform

The Access and Forward-Looking Charges Significant Code Review is Ofgem's programme to reform how network access is defined, allocated, and priced. It's still in development and will significantly change distribution charging when implemented.

What Access Reform addresses:

• How connection capacity is defined and allocated
• Whether charges should better signal network costs
• How to facilitate flexible connections and storage
• Fair charging for distributed generation
• Network investment signals for net zero

Key concepts being explored:

1. Access rights:

• Moving from "firm" connections (guaranteed access) to more flexible arrangements
• Time-of-use access that varies by network conditions
• Interruptible connections at lower cost

2. Forward-looking charges:

• Charges that signal future network investment needs
• Location-specific signals to encourage development where capacity exists
• Time-varying charges reflecting network congestion

3. Residual charges:

• Following TCR principles from transmission to distribution
• Fixed charges based on capacity bands
• Reducing ability to avoid fair share of network costs

Timeline:

• Ongoing consultation and code drafting
• Expected implementation in RIIO-ED2 period (2023-2028)
• Significant industry engagement required

Why this matters: Access Reform will likely change how DUoS charges are structured and calculated. EnergyCode will need to adapt when these changes are implemented, but currently all validation uses the existing CDCM methodology.