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UK industrial greenhouse gas (GHG) emissions must fall by more than 90% over the next 30 years to reach net zero GHG emissions targets by 2050. Current industrial decarbonisation policies fall far short of what is required and so there is an urgent need to consider the design and implementation of new policies to deliver wide-scale and rapid reductions in industrial emissions. We propose that:policy must address multiple challenges to decarbonisation and go beyond an overarching carbon reduction mechanism.there is no 'policy panacea' and policy solutions need to be flexible and adapt over time.a number of principles should guide effective policy design (co-ordinated, lean, consistent, and phased). Action to cut industrial GHG emissions must be taken quickly, and there are many uncertainties about the policy interventions that will work best. This research will help to inform decision makers about the policy areas that merit further consideration and scrutiny

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