Managing the effects of surplus residual charges guidance
Guidance
- Publication date
- Industry sector
- Distribution Network
- Supply and Retail Market
The process Distribution Network Operators (DNOs) should follow to manage excessive surplus residual charges when setting final tariffs for the 2026 to 2027 charging year.
About this guidance
The guidance outlines the different approaches to address the issue of excessive surplus residual charges and the process affected DNOs should follow. It also summarises the responses to our July 2024 call for input on this subject.
This guidance explains what DNOs should do to:
- submit requests to derogate from the 15-month notice period, where required
- submit requests to derogate from the Charging Methodologies, where required
- address the effects of excessive surplus residual charges in the Extra High Voltage Distribution Charging Methodology (EDCM)
- address the effects of excessive surplus residual charges in the Common Distribution Charging Methodology (CDCM)
Explanatory notes of the charging methodology issues as presented at the March 2024 Charging Futures Forum are found on the NESO Charging Futures Forum webpage.
How to respond
Affected DNOs should submit requests to derogate from the 15-month notice period by 20 December 2024.
Affected DNOs should submit requests to derogate from the affected Charging Methodologies by 10 January 2025.
Respond name
James Harvey