DuoS charges which are also known as Distribution Use of System charges or Red Rates are charged by Distribution Network Operators (DNOs) to pay for the operation, maintenance and development of the UK’s distribution networks.
Businesses pay DUoS charges to their supplier who pass them on to the regional DNO to pay for the upkeep of the towers, lines and meters that deliver electricity to homes and businesses in their region.
Often DuoS charges are visible on electricity bills, but sometimes they are built into the contracted unit rates. The charges are applied at various times of the day depending on the location of the DNO, resulting in higher electricity costs at the region’s peak times and lower electricity costs at off peak times.
Businesses can minimise their DuoS charges by reducing their electricity consumption during DuoS Red and Amber Rate periods and moving consumption to a lower cost period called Green Rate.
Red Rate = £6.623 p/kWh
Amber Rate = £1.341 p/kWh
Green Rate =£0.604 p/kWh