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 Dec 2008
  • Decisions
  • 1 Associated documents
This letter sets out the Authority’s decision not to veto NGET’s proposed modification GBECM-11 to the Transmission Network Use of System Charging Methodology.

  • Published: 24th Oct 2008
  • Closed: 5th Dec 2008
  • Consultations and responses
  • 10 Associated documents
This document is the Impact Assessment on NGET's Use of System Charging Methodology Proposal GB ECM-11: Charging Arrangements for Generator Local Assets.

  • Published: 25th Sep 2008
  • Decisions
  • 1 Associated documents
The purpose of this letter is to announce that the Authority intends to undertake an impact assessment on NGET’s Use of system charging methodology modification proposal GB ECM-11: Charging arrangements for generator local assets.

  • Published: 8th May 2008
  • Decisions
  • 1 Associated documents
To provide clarification on the governance framework and regulatory process.

  • Published: 1st May 2008
  • Closed: 12th Jun 2008
  • Consultations and responses
  • 1 Associated documents
The purpose of this letter is to explain the process by which we propose this should be done, and to seek industry views on the level of costs that NGET should be allowed to recover via the ITCt term.

  • Published: 4th Apr 2008
  • Closed: 2nd May 2008
  • Consultations and responses
  • 3 Associated documents
Under their Electricity Licences, 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: 28th Mar 2008
  • Decisions
  • 1 Associated documents
This decision document revises the transmission licences of NGET, SHETL and SPTL to insert arrangements relating to revenue recovery as a result of CAP048.

  • Published: 26th Feb 2008
  • Closed: 25th Mar 2008
  • Consultations and responses
  • 1 Associated documents
This consultation document sets out proposals to revise the transmission licence to insert arrangements relating to revenue recovery as a result of CAP048.

  • Published: 5th Jun 2007
  • Decisions
  • 2 Associated documents
This document contains the approval of statement pursuant to special condition J2 (Basis for Transmission Owner Charges) of SHETL Transmission licence.

  • Published: 5th Jun 2007
  • Decisions
  • 2 Associated documents
This document contains the approval of statement pursuant to special condition J2 (Basis for Transmission Owner Charges) of SP Transmission Ltd transmission licence.

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