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Distribution Connection and Use of System Agreement (DCUSA)

Industry code·Instrument·4 min read

Page type: primary-anchored (mirrors Distribution Connection and Use of System Agreement)

Distribution Connection and Use of System Agreement (DCUSA)

The DCUSA is the multi-party agreement governing the use of electricity distribution networks in Great Britain. It sets out the commercial, charging, and operational arrangements between distribution network operators (DNOs and IDNOs), electricity suppliers, distributed generators, the offshore transmission owner, and gas suppliers (for smart metering access).

Current version: 18.1 (26 February 2026) Legal basis: Electricity Act 1989; Distribution Licence SLC 22; Supply Licence SLC 33A Code administrator: ElectraLink Facilitation company: DCUSA Ltd Source file: sources/electralink/dcusa.md Canonical URL: https://www.dcusa.co.uk/dcusa-document/

What the DCUSA does

The DCUSA replaced the bilateral agreements that previously governed distributor-supplier relationships. It provides: - The framework for use of distribution systems by suppliers and generators - Distribution Use of System (DUoS) charging methodologies (the economically critical schedules) - Connection charging methodology - Billing, payment, and credit arrangements - Metering, energisation, and data provisions - Revenue protection and theft arrangements - Governance and change control

Structure

The DCUSA has approximately 1,100 pages, organised into 3 Sections, 60+ Clauses, and 26+ Schedules.

Section 1: Governance and Change Control

Sub-section Clauses Content
1A -- Preliminary 1-4 Definitions (Clause 1, ~45 pages), commencement, DCUSA objectives, accession
1B -- Governance 5-8 DCUSA Panel constitution and operation, costs
1C -- Change Control 9-14 Change proposals, assessment, voting, decisions, implementation

Section 2: Commercial Arrangements

Sub-section Clauses Content
2A -- Distributor to Supplier/Generator 15-35B Use of system (Cl.18), DUoS charges (Cl.19), billing by settlement class (Cl.20), site-specific billing (Cl.21), security (Cl.24), energisation (Cl.25), metering (Cl.29), demand control (Cl.31), revenue protection (Cl.32), guaranteed performance (Cl.33), confidentiality (Cl.34-35), cost information (Cl.35A-35B)
2B -- Distributor to Distributor/OTSO 36-52 Bilateral connection agreements (Cl.38), connection rights (Cl.39), use of system (Cl.40), charges (Cl.43), code compliance (Cl.48)
2C -- Distributor to Gas Supplier 52A-52F Smart metering comms hub access
2D -- Electricity Supplier to Gas Supplier 52G-52L Inter-fuel supplier relationships for smart metering

Clauses 53-60 covering limitation of liability (Cl.53), termination (Cl.54), force majeure (Cl.55), derogations (Cl.56), disputes (Cl.58), data transfer (Cl.59), and miscellaneous (Cl.60).

Key Schedules

Schedule Title Significance
2A Mandatory Terms for Contracts Standard contract terms
2B National Terms of Connection Connection standards
13 Bilateral Connection Agreement Template for distributor-distributor connections
16 Common Distribution Charging Methodology (CDCM) The standard DUoS charging methodology -- economically the most important schedule
17 EHV Charging Methodology (FCP Model) Extra-high-voltage DUoS charging
18 EHV Charging Methodology (LRIC Model) EHV DUoS charging (alternative model)
19 Portfolio Billing Billing aggregation rules
21 Portfolio Billing for Nested Networks IDNO billing within DNO areas
22 Common Connection Charging Methodology How connection charges are calculated
23 Revenue Protection Code of Practice Theft and loss arrangements
29 LDNO Discount Percentages Discounts for Licensed Distribution Network Operators

Parties

Party type Examples Basis for participation
DNO Parties UKPN, SSEN, NGED, NPG, ENW, SP Energy Networks Distribution Licence SLC 22 (mandatory)
IDNO Parties GTC, ESP, UK Power Networks (IDNO), Vattenfall Distribution Licence SLC 22 (mandatory)
Supplier Parties All licensed electricity suppliers Supply Licence SLC 33A (mandatory)
DG Parties Distributed generators Via other industry agreements
OTSO Party Offshore transmission owner Connection to onshore distribution
Gas Supplier Parties Gas suppliers accessing smart metering comms hubs For smart metering works
DCUSA Ltd Facilitation company Established under Schedule 10

GEMA (the Authority) is explicitly not a party to the DCUSA, though it approves change decisions.

Charging methodologies

The three charging schedules are where the DCUSA has greatest economic impact:

  • Schedule 16 (CDCM): The Common Distribution Charging Methodology sets DUoS tariffs for the vast majority of customers (all below EHV). Part 1 covers cost allocation rules; Part 2 covers tariff structures and application.
  • Schedule 17 (FCP): The Forward Cost Pricing model for EHV-connected customers. Site-specific charges based on the network path.
  • Schedule 18 (LRIC): The Long Run Incremental Cost model for EHV customers. An alternative to FCP.
  • Schedule 22: The Common Connection Charging Methodology governs how connection charges are calculated for new connections and reinforcement.

Governance

Changes are proposed as DCPs (DCUSA Change Proposals), assessed by working groups or the DCUSA Standing Issues Group (Schedule 7), voted on by the DCUSA Panel, and either implemented (self-governance) or referred to GEMA. The DCUSA has been designated as a qualifying document under Schedule 12 of the Energy Act 2023.

Cross-references

Instrument Nature of link
Electricity Act 1989 Foundational statute
Energy Act 2023 Code governance reform (Schedule 12)
Distribution Licence (SLC 22) Legal basis for DNO/IDNO participation
Supply Licence (SLC 33A) Legal basis for supplier participation
BSC Settlement arrangements referenced
Grid Code Compliance obligations (Clause 48)
Distribution Code (DCode) Technical compliance (Clause 26)
Meter Operation Code of Practice Metering obligations (Clause 27)
RIIO-ED price controls Revenue allowances driving DUoS charges

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Last updated

2026-04-05 (initial build from two-pass ingest)