Some Distribution Network Operators levy an additional, capacity-based use of system charge on customers who install microgeneration. Given that microgeneration reduces peak network load, this is contrary to the principle that network charges should be cost reflective.

We believe that the way to address this issue in the first instance is for the DNOs who have put forward such a charging structure to publish a detailed and costed justification. Subsequently, we believe Ofgem should review its decision earlier this year to approve such a charging structure.

Further details on the Micropower Council’s recommendations for alleviating barriers associated with distribution charges available here :-

Micropower Council's Response to Ofgem Consultation