Our guide for large consumers
Ofgem’s Targeted Charging Review (TCR) has resulted in major changes in how businesses are charged for network usage.
Find out today how your business energy bills will be affected.
How TCR has affected business energy billing
The Targeted Charging Review (TCR) is an initiative established by Ofgem aimed at ensuring energy network charges are fair for all businesses.
This fundamentally means charges for businesses connected to the network should be based on the size of their site and overall energy usage.
Ofgem’s pre-TCR investigation determined these charges were uneven between large and small business consumers, partially down to load-shedding strategies employed by larger consumers.
New practices recently implemented include:
- Transmission charges becoming fixed and dependent on usage
- Distribution rates decreasing and costs weighted more heavily towards daily standing charges
- Overall charges differing depending on your meter type
Following years of delays, the new system was finally rolled out in April 2023.
Due to this timing, we are seeing many businesses now dealing with their first energy contract since the changes were implemented. The stark increases, particularly in standing charges, are resulting in significant increases to overall costs; which are often coming as shocks to businesses.
Your bill breakdown
TCR explained in detail
In our dedicated blog, we discuss how the changes were implemented and address popular customer queries, including:
- What are network charges?
- How has TCR changed things moving forward?
- How do I know which band I'll fall into?
- Which businesses will be most impacted?
- How can Procure Smart help?
Speak to us about TCR's impact on your business energy costs
All discussions are informal and no-obligation.