The CRU has, on 07 August 2020, published an Information Paper on the 2021 allowed revenues for ESB Networks as DSO, and the Distribution Use of System (DUoS) tariffs and the Distribution Loss Adjustment Factors (DLAFs) applicable from 1 October 2020 to 30 September 2021.
The CRU allows ESB Networks to charge money towards the cost of building, operating and maintaining the electricity distribution system in Ireland. These charges, which are reflected in customers’ electricity bills, account for circa 25% of the average residential customer’s electricity bill.
The CRU expects that the combined transmission and distribution adjustments will result in the average residential customer’s annual electricity bill rising by circa €29 in October 2020. However, customer’s annual bills depend, on other factors, such as wholesale market costs (which are in turn driven by factors such as international commodity prices), capacity market costs and other system costs. Further detail on these costs can be found in the CRU’s Annual Retail Markets Monitoring Reports. The currently forecast fall in wholesale electricity prices may serve to mitigate some of the costs increases elsewhere e.g. transmission and distribution adjustments.
As mentioned above, DUoS tariffs make up approximately 25% of an average residential customer’s electricity bill. However, suppliers decide how to structure the tariffs they offer to consumers to recover their costs, including other non-network related costs.