ESO

  • 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,...

  • Net zero corporates and ESG

    Long-term regulatory and policy changes needed to avoid stalls to business decarbonisation

    In light of the financial pressures faced by businesses from rising inflation and interest rates, tight supply chains and labour markets, alongside high energy bills, there is a high chance corporate investment in decarbonisation could be in trouble. In Cornwall Insight's latest Insight paper “Business net zero: Making progress in...

  • Commercial and market outlook

    Winter 2023-24 price cap forecasts fall further below 2022-23 EPG, but long-term prospects remain uncertain

    The predictions for the Default Tariff Cap in this piece are out of date, please click here to find our latest forecasts and commentary on the cap. Our latest forecasts for the Default Tariff Cap (price cap) have shown energy bill predictions for a typical household1 have fallen to £3,208...

  • Commercial and market outlook

    Tales of the unexpected: what’s happening with gas prices

    The gas sell-off for contracts relating to this winter/spring & coming summer has continued in the last few days. On January 16th alone, contracts closed down c15%-17% on gas contracts for this spring and through into summer. This is despite some analysts predicting that gapping-up would occur on the promise...

  • Business supply and services

    Early implications of the Energy Bill Discount Scheme  

    People are beginning to take in the changes from the business Energy Bill Relief Scheme (EBRS) to the Energy Bill Discount Scheme (EBDS) that are scheduled for the end of March. As we outlined in our release earlier in the week, the government support is to be scaled back significantly....

  • Business supply and services

    Our response to the announcement of the Energy Bill Discount Scheme 

    The government have announced that the Energy Bill Relief Scheme (EBRS) will be replaced by a less supportive Energy Bill Discount Scheme (EBDS) from April 2023. The government have been managing expectations on reducing support levels for business energy costs now for several months and remain under pressure over control...

  • Home supply and services

    Drop in wholesale energy prices sees price cap predictions fall below the EPG for second half of 2023

    The predictions for the Default Tariff Cap in this piece are out of date, please click here to find our latest forecasts and commentary on the cap. Our latest forecasts for the Default Tariff Cap (price cap) have shown energy bills for a typical household are predicted to be below the government’s...

  • Energy storage and flexibility

    Balancing Reserve: ESO proposes new regulating reserve service

    In recent months National Grid ESO has been developing a new reserve service to improve the management of the system and enable the grid to accommodate zero carbon operation of the electricity system by 2025. On 28 September the ESO first announced at their Autumn 2022 Markets Forum, a proposal...

  • Home supply and services

    Why short-term high wholesale prices aren’t the key driver of domestic energy bills

    The current cold snap across most of western Europe has resulted in high wholesale electricity prices. Observed prices in the GB wholesale market are typically higher than those in neighbouring electricity markets, and here we provide an explanation of why this is likely the case but also why short-term periods...

  • Energy Market Design

    REMA: electricity market design choices

    Electricity markets will serve as the foundation for the future GB energy system.  This article examines some of the market design decisions that will be considered by the Review of Electricity Market Arrangements (REMA). Market design goals At its most simple, a well-functioning market will attract enough potential “buyers” and...

  • Energy storage and flexibility

    National Grid ESO’s ‘early view’ winter report 2022/23

    We have published an alert on National Grid Electricity System Operator's Winter 2022/23 early view report.  The ESO considers that it is important for industry to be provided with a rough understanding of the situation to come, through the early view report. It is operating under the assumption that the peak...

  • Energy storage and flexibility

    National Grid ESO’s ‘early view’ winter report 2022/23

    We have published an alert on National Grid Electricity System Operator's Winter 2022/23 early view report.  The ESO considers that it is important for industry to be provided with a rough understanding of the situation to come, through the early view report. It is operating under the assumption that the peak...

  • Energy storage and flexibility

    Network charging – what’s been going on and why should I care?

    Across Great Britain there are ~810,000km of wires and underground cables that make up our electricity network. Split between the higher voltage, transmission system and the lower voltage distribution system, these lines and cables are responsible for transporting electrons up and down the country to provide consumers with the necessary...

  • Business supply and services

    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...

  • Power and gas networks

    New Fault Ride Through compliance arrangements introduced for transmission-connected generators

    Ofgem approved Workgroup Alternative Grid Code Modification 1 (WAGCM1) of GC0151 Grid Code Compliance with Fault Ride Through (FRT) Requirements on 5 November. In short, this decision introduces a new, legal process, into the Grid Code – the legal text that governs those connecting to the electricity transmission system -...

  • Energy storage and flexibility

    The new face of frequency response – 1 year of Dynamic Containment

    In October 2020, National Grid Electricity System Operator (NGESO) implemented the soft-launch of the Dynamic Containment (DC) service, the first in a new suite of faster-acting frequency response services. Since its launch, the DC service has been the most lucrative response service and has grown considerably in the past year....

  • Regulation and policy

    Ofgem “hands-on” in RIIO-2 as net zero route unfolds

    During the next round of the RIIO price controls, Ofgem can be expected to take a more hands-on approach to outputs the networks are required to provide and the allowed revenues they can charge their users or consumers. This will have impacts for network development including the enabling of electric...

  • Energy storage and flexibility

    BSUoS in COVID-19

    This week National Grid Electricity System Operator (“the ESO”) released its latest forecast of Balancing Services Use of System (BSUoS) charges – levied on suppliers and large generators to recover costs incurred by the ESO in managing the system on a second by second basis. In this blog we look...

  • Energy storage and flexibility

    Turn it up – responding rapidly to manage the system

    In balancing the system, we used to talk mostly about narrowing capacity margins and the need to ensure ‘headroom’. But suddenly there’s a greater need for greater consumption and the provision of ‘footroom’ during COVID-19, and potentially and also in the future. The ESO will need to procure more and...

  • Low carbon generation

    Power demand in Lockdown – Initial COVID-19 impact on the power market

    The power and gas systems are mirror images of the wider economy, entering practically every aspect of work and leisure. They naturally face challenges as a result of the effects of the COVID-19 virus on the way we work, travel and live. Electricity demand has reported to have fallen in...

  • Regulation and policy

    BSUoS task force report sets scene for Targeted Charging Review decision

    The Electricity System Operator (ESO) led task force issued its final report on 31 May, recommending that all the costs in balancing services use of system (BSUoS) charges should be treated solely as cost recovery. The report will feed into Ofgem’s decision on the Targeted Charging Review (TCR) Significant Code...

  • Commercial and market outlook

    Five things we learnt from Energy Spectrum | 663

    At the start of April, National Grid Electricity System Operator (ESO) became a separate legal entity within the National Grid group, separate from the transmission business and with its own licence. In this week’s Energy Perspective, we discuss the move, which marks a milestone in the development of the ESO. We...

  • Low carbon generation

    Paradise Lost: The changing face of Embedded Benefits

    Current electricity market arrangements give rise to the concept of “embedded benefits”. These are predominantly supplier costs that are reduced or avoided via contracting with small-scale generation connected at the distribution network level instead of the national transmission system. Distributed generation does not generally attract charges for using the national...