CRU has announced new charges related to the Distribution Use of System (DUoS) and Transmission Use of System (DTUoS) tariffs for 2024/2025, which will come into effect from 1st October 2024. These changes could significantly impact businesses, especially those with high energy consumption.
What does this mean?
Distribution and transmission tariffs are additional charges that businesses must pay for accessing and using the electricity grid infrastructure. These charges help cover the cost of maintaining and upgrading the grid, ensuring a reliable electricity supply. DUoS charges apply to the use of local distribution networks, while DTUoS charges cover the use of the high-voltage transmission network that transports electricity over long distances before it reaches the distribution system.
Starting in October 2024, these tariffs will be adjusted, which could lead to an increase in your business's electricity bills. Changes in DUoS and DTUoS rates will vary depending on factors such as your business’s energy consumption, the time of day energy is used, and whether you are connected to the distribution or transmission network. Understanding these new tariffs is crucial for businesses looking to manage operational costs and avoid unexpected increases in energy expenses.
AUP Impact
To illustrate the expected impact, we have included a table showing the estimated Average Unit Price (AUP) for the 2024/25 tariff period. The estimated Transmission AUP for this period is 3.91 c/kWh, based on a revenue allowance of €1,310.80 million and a forecast of 33,500 GWh of electricity to be sold. This represents a 30.4% increase compared to the estimated AUP for 2023/24. The combined impact of DUoS and DTUoS tariffs is an approximate increase of 15.6% compared to 2023/24. The forecasted demand of 33,500 GWh is a decrease of 2.6% compared to 34,400 GWh in 2023/24. The decrease in energy demand, along with a higher revenue allowance, will result in an increase in the AUP. However, it is not just demand that has changed; there have also been changes in forecast costs and outturns.
Image 1: Summary of AUP Impact
Distribution Use of System (DUoS) Charges for 2024/2025
DUoS charges apply to the use of local electricity distribution networks, which supply power to homes and businesses. For the 2024/2025 period, DUoS charges have been adjusted to reflect the costs of maintaining and upgrading these networks.
The table below provides a customer impact analysis showing the amount of DUoS paid by an average customer (broken down by category) under both the current and new tariff (both tariffs are post-rebalancing tariffs). This will allow you to see how these adjustments might affect your business based on your category and level of consumption.
Image 2: DUoS Customer Impact Analysis
For a detailed breakdown of these tariff adjustments and how they might affect your business, you can consult the official documents approved by the Commission for Regulation of Utilities (CRU) via the following links:
How can Digren Energy help?
At Digren Energy, we understand the significant impact rising energy costs can have on your business. We provide efficient energy solutions designed to reduce your reliance on the grid and limit the effect of these rising charges. Whether it’s through renewable energy solutions, energy storage systems, or optimised energy management, we can help you minimise costs while enhancing your business’s sustainability and profitability. 💡
Don’t let rising network charges disrupt your business. Now is the time to explore smart, cost-saving energy options with Digren Energy!
