Taking the first step on the road to TNUoS reform
Andrew Urquhart, Head of Whole System at SSEN Transmission shares our support for Ofgem’s TNUoS Call for Evidence Next Steps publication and explains why charging reform needs action now to avert the climate emergency.
As we deliver a network for net zero and continue to advocate on the case for TNUoS reform – in the context of the climate emergency and on behalf of our generation customers and wider stakeholders in the north of Scotland - we welcome the publication of Ofgem’s next steps document following its TNUoS Call for Evidence late last year.
Reform of Transmission Network Use of System Charging – or TNUoS – is one of, if not the, main advocacy area of focus for our renewable electricity generation customers and wider stakeholders across the north of Scotland. It’s impacts on investments in renewables extends well beyond the energy sector, with the Scottish Government’s First Minister, Nicola Sturgeon MSP, supporting calls for reform in an answer to a question from Western Isles MSP, Alasdair Allan, just last week during First Minister’s questions.
As a stakeholder-led business committed to advocate on behalf of our customers and stakeholders, over the past year, we have been seeking views from our customers and those with an interest in our network to understand current barriers and concerns with the current transmission charging regime. In addition to Scottish projects paying the highest charges in the UK, this feedback highlights that users of the transmission network need cost certainty and clear, forecastable network charges to plan and deliver vital renewable electricity projects that will support delivery of the UK’s legally binding emissions reduction target.
As a Transmission Owner (TO), we also need this certainty so that we can plan our network efficiently; connecting the critical infrastructure that will help to unlock GB’s collective decarbonisation efforts.
You can read more about our TNUoS engagement and analysis here on our TNUoS Advocacy Hub. In summary, our findings suggest that the current TNUoS methodology, which was devised over 30 years ago for a fossil fuel led energy system, is no longer fit for purpose in a net zero world.
We note and welcome Ofgem’s confirmation within its next steps document, which was published on Friday, of the need to take both short and long term steps to make changes to the current TNUoS charging methodology, with volatility and unpredictability of charges being a key focus of its proposed reform. This is a positive outcome for industry, following Ofgem’s recent Call for Evidence on the subject, and is one that will hopefully help to break down current barriers that create uncertainty for our customers in the north of Scotland and across GB (however it’s key to acknowledge that the unpredictability and volatility of charges is not purely a Scottish issue).
We urge that short term fixes are progressed at pace and align with wider policy milestones, such as the CfD, to help to swiftly reduce current barriers in the context of net zero.
In addition to addressing volatility, we hope that Ofgem’s task force reviews will also provide opportunity for a more holistic approach in considering wider aspects of TNUoS charging that are currently disincentivising delivery of clean, green renewable generation in the places with the best natural resource to support net zero goals. Impact of the current regime on consumers should also be carefully considered as part of this process.
We look forward to further detail from Ofgem in due course as the scope of its task forces, and longer-term review takes shape. As we continue to deliver a network for net zero, and advocate on the case for TNUoS reform, we look forward to engaging further in the evolution of TNUoS alongside Ofgem, our customers and wider stakeholders.
The journey on the road to reform has begun, and the steps we collectively take on this road will be critical for a low carbon future.