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: 4th Aug 2017
  • Decisions, Open letters and correspondence
  • 2 Associated documents
We are establishing a Charging Futures Forum to help steer the various related ongoing charging reviews, and have published a letter outlining the details.

  • Published: 4th Aug 2017
  • Decisions, Open letters and correspondence
  • 7 Associated documents
Following our consultation in spring, we have decided to launch a Targeted Charging Review (TCR) Significant Code Review (SCR).

  • Published: 22nd Jun 2017
  • Decisions
  • 1 Associated documents
We have decided to direct the implementation of CMP264/265 WACM4. P348 and P349 are the consequential modifications which accompany CMP264 and CMP265.

  • Published: 22nd Jun 2017
  • Decisions
  • 1 Associated documents
We have decided to direct the implementation of CMP264/265 WACM4. CMP269 and CMP270 are the consequential modifications for CMP264 and CMP265.

  • Published: 22nd Jun 2017
  • Decisions
  • 7 Associated documents
Following our March 2017 consultation on industry proposals CMP264 and CMP265 and our consideration of responses, we have decided to direct that WACM4 be implemented, from 1 April 2018. This document covers our assessment of the impact of those proposals...

  • Published: 20th Jun 2017
  • Decisions, Open letters and correspondence
  • 1 Associated documents
Following our March 2017 consultation on industry proposals CMP264 and CMP265 and our consideration of responses, we have decided to confirm our “minded to” position and direct that Workgroup Alternative CUSC Modification (WACM) 4 should be made.

  • Published: 15th Mar 2017
  • Open letters and correspondence, Reports and 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
  • Closed: 5th May 2017
  • Consultations and responses
  • 3 Associated documents
Following the TCR consultation, we launched a Significant Code Review (SCR) on 4 August 2017.

  • Published: 13th Mar 2017
  • Reports and 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 and responses
  • 4 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.

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