Our next series of posts will cover TRIAD, TNUoS & DUoS charges over the next five weeks.
Our first post is going to cover what DUoS & TNUoS charges are and how they can affect your business, as well as a brief explanation of the mandatory P272 regulation.
The introduction of P272 meant that if your organisation had any advanced NHH (non-half hourly) meters which were in the Profile Class from 05-08, they had to shift to a half hourly settlement.
What are DUoS charges?
DUoS (Distribution Use of System) and is a charge that is now added to all business electricity bills. Under P272’s half hourly metering system, the DUoS charge is now based on the volume of electricity which is passed through the distribution network. The distribution network is responsible for delivering energy from the National Grid transmission network to homes and businesses.
DUoS rates can vary from region to region as well as the time of day. The charges are time banded depending on how much energy is in demand at that period. The red scale of charges is typically applied to electricity used between 4-7pm, Monday to Friday so if you use less electricity during this time, you will pay lower DUoS charges.
What are TNUoS charges?
TNUoS (Transmission Network Use of System) is an electricity charge which pays for the cost of installing and maintaining the electricity transmission system around the UK. The charge applies to generators as well as business users.
Under the P272 metering, the charges are calculated based on the rate of demand. Like the DUos charges, TNUos charges are also banded but this time in triads which refer to periods of the year. Over the winter months is usually when DUoS charges are highest due to the increase in demand for electricity.
How does this affect my business?
P272 has brought in a significant change in how businesses are charged for DUoS and TNUoS.
Some businesses will see their bills increase and some will see them decrease, depending on their consumption patterns.
It encourages users to change their energy consumption patterns to reduce pressure on the energy grid during these periods and assist the energy network to meet the high demand.
Your business should also aim to understand and learn about how these charges work so your energy usage can be managed better and ultimately, reduce costs.