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Consumer network access, core capacity

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Abstract:

This document is a report for citizens advice by CAG consultants, in association with Timur Yunusov and Jacopo Torriti.

In December 2018 Ofgem launched a Significant Code Review (SCR) looking at access and forward-looking charging arrangements. Amongst other things it is seeking to clarify "access rights and choices for small users".

Ofgem is considering the concept of minimum "core access" in its proposals. "Core access" (if it can be defined) is an amount of capacity that cannot readily be flexed and that provides for consumers' basic needs. Capacity-based (or time of use energy-based) charging might mirror this concept by considering an affordable level of "core access"

Citizens Advice is participating in the SCR and has commissioned this work to better understand the concept of core access, and understand what it means for consumers. Citizens Advice posed three key questions for this research:

  • Is it possible to determine a, or a set of, common core electricity network capacity levels for domestic consumers and micro-businesses?
  • What should the core level of access be set at?
  • How could this be implemented (technical or commercial solutions)? What are the barriers/risks to consumers, suppliers and networks?
  • In the same order, we address these questions through:

  • An evidence review covering experiences with capacity limits and capacity charging in other electricity markets.
  • Interrogation of smart meter data available from DNO innovation projects.
  • Commentary on the implementation options, looking at both voluntary and mandatory measures.
  • The evidence points to a basic core capacity of around 2-3kW, characteristic of low income consumers. However, this research simply looks at current capacity usage, and has not examined the factors contributing to capacity use. Further work is required to understand whether low income consumers are using enough electricity to meet their basic needs - it is possible that the 2-3kW figure reflects suppressed demand.

    This report contains an executive summary, and is divided into the following sections:
    1. Introduction
    2. Literature Review
    3. Deriving capacity limits
    4. Implementation
    5. Conclusions and further work

    Publication Year:

    2019

    Publisher:

    CREDS

    DOI:

    No DOI minted

    Author(s):

    Snodin, H., Torriti, J. and Yunusov, T.

    Language:

    English

    File Type:

    application/pdf

    File Size:

    0 B

    Rights:

    Rights not recorded

    Rights Overview:

    Rights are not recorded within the edc, check the data source for details

    Further information:

    N/A

    Region:

    United Kingdom

    Publication Type:

    Research Report

    Theme(s):

    Flexibility

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