Time to stop rolling the network charges dice

The charges levied by distribution and transmission companies for use of their networks are so volatile and unpredictable that they create major unhedgeable risks for suppliers. From 2010 to 2011, domestic electricity distribution charges changed between -3 per cent and 24 per cent, based on average consumption figures across the 14 distribution network operator (DNO) regions. The latest indicative tariffs suggest that households will see similar changes for the coming year.

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