Electricity: Standing Charges

(asked on 18th October 2023) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 18 October 2023 to Question 201507 on Electricity: Standing Charges, whether grid connections in one regional area where the energy is transmitted to another are included in the costs of the (a) transmitting and (b) receiving area.


Answered by
Amanda Solloway Portrait
Amanda Solloway
Government Whip, Lord Commissioner of HM Treasury
This question was answered on 23rd October 2023

Charging arrangements vary between transmission and distribution networks.

Transmission networks enable the bulk transfer of electricity across the country from sources of generation to local electricity distribution networks, with most costs charged on a national basis.

Transmission charges also feature a locational price signal, reflecting the costs that different users impose on the transmission network by connecting in different locations.

Local distribution networks convey electricity within a region. Distribution charges vary by Distribution Network Operator region, reflecting the different costs of running each local distribution network in a specific region and the number of consumers those costs are spread across.

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