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: 26th Jun 2012
  • Decisions
  • 1 Associated documents
This document approves SHETL’s Statement of the Basis of Transmission Owner Charges applicable from 1 April 2012.

  • Published: 26th Jun 2012
  • Decisions
  • 1 Associated documents
This document approves SPTL’s Statement of the Basis of Transmission Owner Charges applicable from 1 April 2012.

  • Published: 20th Apr 2012
  • Closed: 18th May 2012
  • Consultations and responses
  • 1 Associated documents
Under their Electricity Licenses, SHETL and SPTL are required to have a Statement setting out the basis upon which they will charge NGET for services provided.

  • Published: 27th Sep 2011
  • Decisions
  • 2 Associated documents
This document approves SPTL’s Statement of the Basis of Transmission Owner Charges applicable from 1 April 2011. The appendix contains the licensee's TO charging statement.

  • Published: 27th Sep 2011
  • Decisions
  • 2 Associated documents
This document approves SHETL’s Statement of the Basis of Transmission Owner Charges applicable from 1 April 2011. The appendix contains the licensee's TO charging statement.

  • Published: 5th Aug 2011
  • Closed: 2nd Sep 2011
  • Consultations and responses
  • 4 Associated documents
Under their Electricity Licenses, SHETL and SPTL are required to have a Statement setting out the basis upon which they will charge NGET for services provided. This letter seeks views on SPTL’s proposed revisions to their 2011 draft statement.

  • Published: 13th May 2011
  • Closed: 10th Jun 2011
  • Consultations and responses
  • 3 Associated documents
Under their Electricity Licenses, SHETL and SPTL are required to have a Statement setting out the basis upon which they will charge NGET for services provided. This letter seeks views on the proposed modifications.

  • Published: 26th Jan 2011
  • Decisions
  • 1 Associated documents
This letter sets out the Authority's decision in relation to the Use of System Charging Methodology modification proposal GB ECM-27.

  • Published: 18th Oct 2010
  • Closed: 29th Nov 2010
  • Consultations and responses
  • 12 Associated documents
This letter consults on Ofgem's proposal to extend the time limit for the small generator discount (SLC C13).

  • Published: 4th Oct 2010
  • Decisions
  • 1 Associated documents
This letter sets out the Authority's decision in relation to the Use of System Charging Methodology modification proposal GB ECM-26.

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