Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 20
20
Accepted
Reassess Targeted Charging Review outcomes and consult on broader allocation of increased network infrastructure costs.
Conclusion
Ofgem should reassess the outcomes of its Targeted Charging Review and consult on how increased network costs resulting from a sharp increase in investment in electricity infrastructure could be allocated more broadly, including across wider parts of the energy system. It should complete this process by summer 2026. (Recommendation, Paragraph 71) Billing issues and redress
Government Response Summary
The government confirms that Ofgem is conducting a Cost Allocation and Recovery Review (CARR), which includes electricity network charges and investment costs, to determine how fixed energy system costs are allocated. Ofgem published a Call for Input in Summer 2025 and will conduct a full consultation on options.
Government Response
Accepted
HM Government
Accepted
As the Committee notes, Ofgem are conducting a Cost Allocation and Recovery Review (CARR) to look at how fixed energy system costs are allocated and recovered and consider whether this can be done in a fairer and more efficient way. The scope of this work includes electricity network charges and other costs related to investment in infrastructure. Ofgem published a Call for Input over Summer 2025 and will conduct a full consultation on a refined list of options in due course.