The Utility Regulator has initiated a project to review and reform the structure of electricity network use of system (UoS) charges in Northern Ireland. The structure of network tariffs plays a critical role in determining how network costs are recovered and how users interact with the electricity system.
Northern Ireland’s electricity system is undergoing significant change, including the potential for increased electrification of transport and heat, and growth in distributed generation. Recent developments include policy reforms to connection charging arrangements, the planned roll-out of smart meters, and increased uptake of low-carbon technologies.
The current tariff structures were developed in a different energy context and may no longer fully reflect the way in which users make use of the network or the costs that they impose.
The planned roll-out of smart meters is also a key enabler of tariff reform. Smart metering will provide access to more granular consumption data and enable the implementation of a wider range of tariff structures, including time-of-use and dynamic tariffs.
These changes present several challenges, in particular, whether the current tariffs will continue to be cost-reflective over time. Ensuring that network costs are allocated fairly across users will therefore be a key consideration in the review.
In addition, network charges form only one component of the overall electricity bill, alongside wholesale electricity costs and supplier costs. This highlights the need to consider how the signals and incentives provided by network tariffs operate alongside other elements of electricity pricing and wider market arrangements, and the resulting impacts on consumer behaviour and outcomes.
Where evidence supports reform, changes to tariff structures could provide an opportunity to ensure that charges are more cost-reflective, support efficient use of the electricity network and facilitate the transition to a low-carbon energy system.
This is a four-year project included in our Forward Work Programme for 2026/2027 and is aimed at supporting a just transition to net zero.
The consultation sets out our proposed programme of work. We have posed specific questions to help focus on each aspect of the consultation; however, consumers and stakeholders are welcome to express views on any particular aspect of the consultation that they wish to.
For more information on the consultation and details on how to respond, including a link to Citizen Space, please visit our consultation page.