This is potentially damaging news for the commercial and industrial energy storage sector in the UK. One of the main benefits to businesses installing batteries is to switch their demand profile to avoid Triads, times of peak UK demand, reducing their demand charges which effect their energy bills for the whole year. Ofgem are proposing to change the current demand charge mechanism for C&I customers and replace it with a fixed charge. This completely takes away the business case for installing batteries. 

Ofgem are suggesting this to ensure network providers are not losing out on revenues but this will have a negative effect on the energy network. Businesses installing batteries are not only saving themselves money but they are positively contributing to reducing peak demand. Smoothing out the demand profile makes network planning and matching generation and demand far easier. We'll have to see how this story progressing and how it will impact the C&I storage sector.