UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP
Distribution Use of System (DUoS) charges are paid to DNOs to cover the cost of building and maintaining a local distribution network. The charges are mostly collected from suppliers under the Distribution Connection and Use of System Agreement (DCUSA) (and are recharged by those suppliers). However, they are also paid directly by any generator who is a party to the DCUSA. The methodology used to derive DUoS charges is set out in Schedules 16, 17 and 18 of the DCUSA.
Regulation of DNOs is achieved through price controls, which limit how much DNOs can charge the supply companies. The current price control regime for electricity distribution (referred to as RIIO-ED2) came into force on 1 April 2023 and will apply for a five-year period until 31 March 2028. For further details, please refer to 2.1 The Wholesale Electricity Market .
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