Charging

Users of the transmission system are subject to three types of transmission charges:

  • Connection charges
  • Transmission Network Use of System (TNUoS) charges
  • Balancing Services Use of System (BSUoS) charges.

Each type of charge is payable to National Grid Electricity Transmission plc (NGET) in its role as system operator. 

Connection charges

Connection charges recover the cost of providing and maintaining connection assets. NGET defines connection assets as those assets solely required to connect an individual user, eg a generator, to Britain’s transmission system, which are not and would not normally be used by another connected party. The costs of these assets are recovered directly from the user. These connection charges do not recover costs associated with assets that are shared (or could potentially be shared) by more than one user.

Transmission Network Use of System charges

Transmission Network Use of System (TNUoS) charges recover the cost of providing and maintaining shared (or potentially shared) electricity transmission assets, ie assets that cannot be solely attributed to a single user. TNUoS charges are recovered from all generation and demand users of Britain’s electricity transmission system. These charges vary by location, reflecting the costs that users impose on the transmission network to transport their electricity.

Balancing Services Use of System charges

Balancing Services Use of System (BSUoS) charges relate to the costs of the day-to-day operation of the transmission system. These costs primarily relate to the balancing of Britain’s electricity system and include the costs of constraining generation.

Charging methodologies and governance

In terms of charging, the design and maintenance of the relevant charging methodologies is enforced through licence conditions, which contain relevant objectives for the methodologies.

The charging methodologies used to derive the charges for connection to and use of the transmission system are administered by NGET in its role as system operator. These methodologies are contained in section 14 of the Connection and Use of System Code (CUSC) industry code. 

NGET has responsibility through its electricity transmission licence to ensure that these methodologies are kept up to date. As part of this it must bring forward modifications, where appropriate, that better meet the relevant objectives set out in their licence.  There are open governance arrangements that allow industry parties to propose modifications to these methodologies.

Industry assesses these proposals before submitting a recommendation to us. We make the final decision whether to implement any change. We do not set or approve the level of individual charges.

 

Publications and updates

  • Published: 15th Mar 2017
  • Open letters & correspondence, Reports & plans
  • 0 Associated documents
Supplementary modelling report and associated data for our CMP264/265 minded to decision and draft impact assessment. We also invite interested stakeholders to an optional and have extended the date for responses.

  • Published: 13th Mar 2017
  • Closing: 5th May 2017
  • Consultations & responses
  • 1 Associated documents
We are consulting on launching a Significant Code Review to look at network residual charges, and some charging arrangements for embedded generation under 100 MW. We are also consulting on some changes we think should be made to the current network...

  • Published: 13th Mar 2017
  • Reports & plans
  • 1 Associated documents
Report on international experience of residual network charging in evolving electricity systems.

  • Published: 1st Mar 2017
  • Closed: 18th Apr 2017
  • Consultations & responses
  • 3 Associated documents
Industry have raised CUSC modifications CMP264 and CMP265. This impact assessment covers those proposals and their 23 alternatives sets out our minded to decision. We have extended the date for responses to this consultation to 9am on 18 April 2017.

  • Published: 2nd Dec 2016
  • Open letters & correspondence
  • 2 Associated documents
We have published the non-confidential responses to our July open letter, which set out our initial thinking on the charging arrangements for embedded generation.

  • Published: 2nd Dec 2016
  • Open letters & correspondence
  • 1 Associated documents
This letter provides an update on our continued work around charging arrangements for embedded generation (called ‘embedded benefits’).

  • Published: 23rd Aug 2016
  • Decisions
  • 1 Associated documents
Decision on urgency for code modification to the Connection and Use of System Code (CUSC).

  • Published: 29th Jul 2016
  • Open letters & correspondence
  • 1 Associated documents
We’ve set out concerns on network charging for small embedded generation, and seek views on the subject by 23 September 2016.

  • Published: 18th Jul 2016
  • Decisions
  • 1 Associated documents
We have rejected these modifications to the Connection and Use of System Code (CUSC).

  • Published: 6th Jul 2016
  • Decisions
  • 2 Associated documents
We are approving the form of SP Transmission's charging statement for 2016/17.

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