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.

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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.

CMP308 will be implemented on 1 April 2023 and, while an Ofgem decision is still awaited on the proposal to make BSUoS a fixed volumetric charge, transmission-connected generators now have clarity that they will no longer be liable for BSUoS costs from this date.
Business supply and services Regulation and policy
Tom Faulkner

Tom Faulkner

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