To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he has made an assessment of the effect of the timetable for Ofgem's Targeted Charging review on (a) investment and (b) innovation in (i) onsite flexible generation and (ii) a future flexible energy system.
Ofgem’s Targeted Charging Review is seeking to ensure all parties connected to the electricity network make a fair contribution to its fixed costs. As was outlined in the ‘After the Trilemma’ speech of 15 November 2018, it is important that we develop an energy system that discourages free riding and ensures a fair distribution of such costs.
Network charging is a matter for Ofgem as the independent regulator, and decisions on its Targeted Charging Review are for it to make. However, Government is working to understand the policy implications of Ofgem’s review proposals across a broad range of interests. The analysis which Ofgem has published as part of its recently closed consultation shows that the proposals could affect investment decisions across a number of technologies, but no final decisions have been taken on timetable or other aspects.