Minded to decision to remove the Supplemental Balancing Reserve and Demand Side Balancing Reserve cost recovery arrangements for 2017/18

Publication date
9th January 2017
Closing date
3rd February 2017
Policy areas
Status

This consultation letter sets out our proposed approach to removing the Supplemental Balancing Reserve (SBR) and Demand Side Balancing Reserve (DSBR) cost recovery arrangements for 2017/18. This would remove the ability of National Grid Electricity Transmission (NGET) to recover any efficient costs associated with procuring or operating these services in Winter 2017/18. This follows the government’s decision to bring forward the Capacity Market by a year for delivery in 2017/18.

Our proposed approach would not impact on the arrangements for 2016/17, recognising that NGET should be able to apply for cost recovery for the current winter.