Domestic and SME tariff development for the Customer-Led Network Revolution
The Customer-Led Network Revolution is testing demand side response solutions across a range of customer groups. This report describes the methodology we have used to develop the domestic and SME tariffs and presents the resulting tariffs that will be trialled. The methodology and tariff propositions have been developed in collaboration with Northern Powergrid and British Gas.
The CLNR received funding under Ofgem’s Low Carbon Networks Fund in 2010. It aims to provide knowledge and experience on the deployment of network response and demand response technologies at distribution network level. This report focuses on the part of the project which looks at customer-side innovations, in particular considering: the extent to which customers are flexible in their load and generation; and the cost of this flexibility.
The trial aims to test three tariff types across domestic and small business (SME) customer groups, with a particular focus on customers holding low-carbon technologies such as electric vehicles and heat pumps. The three tariff types are as follows.
- Time of Use – a static time of use tariff leaving customers with total discretion over how they respond.
- Restricted Hours – a static time of use tariff with an additional automated load switching facility which runs key loads outside of peak periods as a default, but allows customers to override this default if they wish.
- Direct Control – a proposition which allows certain loads to be occasionally interrupted through external dynamic signals and which does not allow customers to override the interruptions.
A technical solution enabling customers with solar photovoltaic (PV) panels to use the power they generate within the home is also included in the trial.”