Minded to decision to remove the Supplemental Balancing Reserve and Demand Side Balancing Reserve cost recovery arrangements for 2017/18

This consultation letter sets out our proposed approach to removing the Supplemental Balancing Reserve (SBR) and Demand Side Balancing Reserve (DSBR) cost recovery arrangements for 2017/18. This would remove the ability of National Grid Electricity Transmission (NGET) to recover any efficient costs associated with procuring or operating these services in Winter 2017/18. This follows the government’s decision to bring forward the Capacity Market by a year for delivery in 2017/18.

Our proposed approach would not impact on the arrangements for 2016/17, recognising that NGET should be able to apply for cost recovery for the current winter.