TCR
Targeted Charging Review
Industry ReformsA major reform from April 2023 that changed how network costs are recovered - replacing the old "Triad" system (which rewarded usage reduction during peak winter periods) with fixed capacity bands.
Before the Targeted Charging Review, large businesses could significantly reduce their TNUoS transmission charges through "Triad avoidance" - cutting electricity usage during the three highest-demand half-hours each winter. This created a cottage industry of Triad warning services and demand management, but Ofgem concluded it was unfair, as avoided costs were simply shifted to other customers.
What TCR changed:
Before TCR (pre-April 2023):
- Triad-based charging for TNUoS
- Businesses could dramatically reduce costs through Triad avoidance
- Unpredictable costs dependent on winter demand peaks
- Industry of Triad warning services
After TCR (April 2023 onwards):
- Fixed Transmission Demand Residual (TDR) bands
- ~88-100% of TNUoS recovered through fixed charges
- Only small locational element remains variable
- Predictable, unavoidable costs based on capacity band
Impact: For businesses that previously benefited from Triad management, TCR increased their costs. For those who didn't engage in avoidance, it often reduced costs slightly. The reform made costs more predictable and removed the operational complexity of responding to Triad warnings.
Related terms
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