Re-balancing the balancing costs –BSUoS charges to be levied solely on suppliers from April 2023

Balancing the electricity system costs money. National Grid in its role as Electricity System Operator (ESO) takes actions in every half hour to achieve the remarkable feat of keeping supply and demand finely balanced on our national electricity system – maintaining a system which runs between 49.8 and 50.2Hz with very high reliability. Currently, the costs of balancing the system are recovered from suppliers and large transmission connected generators through Balancing Services Use of System (BSUoS) charges. BSUoS is levied on a £/MWh basis, based on the cost of balancing the system in each half hour divided by the total chargeable volume on the system in that half hour.

To keep reading, please log in to your account or sign up for free

Our bespoke generator weekly report sets out the current open energy consultations and industry code modifications you should be aware of for your market position and offering. We provide an impact rating and explanation for each update to help prioritise your resources and understand the effect on your business. For more information, please get in touch with Tom Faulkner on 01603 542123 or via email t.faulkner@cornwall-insight.com.

Related thinking

Energy storage and flexibility

Revenue Stacking for Flexibility: A Deep Dive into GB Electricity Flexibility Services 

In the ever-evolving landscape of the energy sector, the role of flexibility services in ensuring a stable and resilient electricity grid has become increasingly vital. As the demand for renewable energy sources continues to grow, flexibility service providers play a crucial role in balancing supply and demand, optimising grid performance,...

Low carbon generation

Latest developments in the TPI space

We recently published our 2023 Annual TPI report which provides an independent review and analysis of the market for TPIs, and the services provided by them. The report also looks at the current challenges and opportunities for TPIs, such as regulatory changes, competition with suppliers, and diversification of services. 2023...

Low carbon generation

Transforming the Energy Market: how change will work for consumers

The past two years have seen rocketing energy prices, as households and businesses grapple with bills far beyond pre-crisis levels. There is no way to turn back the clock, however, we can look to seize the many opportunities to reshape and future-proof the UK energy system, ensuring a brighter future...

Regulation and policy

What’s going on with REGOs?

Renewable Energy Guarantees of Origin, more commonly referred to as REGOs, are certificates issued to accredited renewable generators for every MWh of electricity they produce over a year period. The initial intentions of these certificates were to provide suppliers a means to prove the level of renewable generation they received...

Energy storage and flexibility

Off-peak electricity use and home generation could cut billions off energy costs

New analysis from Cornwall Insight and Smart Energy GB has revealed the substantial cost-saving potential of household flexible electricity initiatives such as time-of-use tariffs, smart meters, solar PV, and batteries. The has data revealed national wholesale and system electricity costs could be cut by an annual £4.6bn in 2030 and...

Regulation and policy

Capacity Market: Rule changes for upcoming auctions

The latest round of Capacity Market auctions is underway following the publication of the auction parameters on 18 July, with the prequalification window subsequently opening on 26 July. In this blog, we explore some of the changes made to the rules and regulations of the scheme ahead of this year’s...

Home supply and services

Ofgem strives to improve consumer experiences across both the domestic and non-domestic sectors

Over the last week, a number of anticipated publications were issued by Ofgem that hold the potential to make a significant change to the requirements on both domestic and non-domestic suppliers. The findings of Ofgem’s non-domestic market review were revealed, alongside a policy consultation on the options available to address...

Home supply and services

Integrate to Zero: Carbon and cost reduction opportunities from integrated energy in GB

Our insight paper, 'Integrate to Zero: Carbon and cost reduction opportunities from integrated energy in GB', summarises the current market landscape, opportunities, and barriers to offering integrated energy propositions to consumers in Great Britain (GB). We define an integrated energy proposition as one which aims to provide end users with...