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: 22nd Jul 2009
  • Decisions
  • 1 Associated documents
The Authority hereby modifies SLC C5 and C6 of the electricity transmission licence in accordance with the Schedule to this Modification with effect on and from 10 June 2009

  • Published: 26th Jun 2009
  • Decisions
  • 1 Associated documents
This letter approves Scottish Power Transmission's Statement for the Basis of Transmission Owner Charges applicable from 1 April 2009.

  • Published: 26th Jun 2009
  • Decisions
  • 1 Associated documents
This document approves SHETL's Statement of the Basis of Transmission Owner Charges applicable from 1 April 2009.

  • Published: 17th Jun 2009
  • Open letters and correspondence
  • 1 Associated documents
Ofgem’s view that NGET’s report on GB ECM-18 does not contain the necessary analysis to allow full assessment of the impacts of this proposal, with our expectation that NGET will withdraw the current version of the report prior to 19/06/09.

  • Published: 10th Jun 2009
  • Closed: 9th Jul 2009
  • Consultations and responses
  • 1 Associated documents
The Authority gives notice pursuant to section 11A of the Electricity Act 1989 of its proposal to modify SLC C5 (Use of system charging methodology) and SLC C6 (Connection charging methodology) and seeks the views of interested parties.

  • Published: 30th Mar 2009
  • Closed: 27th Apr 2009
  • Consultations and responses
  • 3 Associated documents
In accordance with the powers contained in section 11A of the Act, this letter sets out proposals to modify Standard Licence Condition (SLC) C5 and SLC C6 and seeks the views of interested parties.

  • Published: 30th Mar 2009
  • Decisions
  • 1 Associated documents
This letter sets out the Authority’s decision in relation to the Use of System Charging Methodology Modification Proposal GBECM-08

  • Published: 25th Mar 2009
  • Closed: 22nd Apr 2009
  • Consultations and responses
  • 2 Associated documents
Under their Electricty 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: 4th Feb 2009
  • Closed: 18th Mar 2009
  • Consultations and responses
  • 1 Associated documents
This document is the Impact Asssessment on NGET's Use of System Charging Methodology Proposal GB ECM-08: Introduction of charging arrangements associated with Offshore Transmission Networks.

  • Published: 9th Jan 2009
  • Open letters and correspondence
  • 1 Associated documents
This letter confirms our intention to undertake an impact assessment of NGET’s proposal to modify the use of system charging methodology in relation to the charging arrangements for offshore transmission networks.

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