This ensures that only efficient costs are passed onto final customers.
To set such charges, the CER first determines the revenue that ESB Network Ltd) as the Distribution System Operator (DSO) is allowed to earn in order to cover the cost of providing the network. This is done every five years on an in-depth basis and only equitable levels of costs are permitted to be recovered from customers.
The revenue the DSO is allowed to collect from customers is reviewed and refined each year and the ‘allowed revenue’ is used to calculate the distribution use of system (DUoS) tariffs, which are approved by the CER. DUoS tariffs are charged to suppliers on the basis of the amount of energy used by their customers, and include standing charges. There are different DUoS tariffs for different types of customers.
Click here to view decision documents related to regulated revenue.