National Grid’s proposed new balancing services: draft impact assessment
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closing date
Company
Industry sector
Generation and Wholesale Market
Decision
Following two rounds of consultation, National Grid (NGET) has made an application to the Gas and Electricity Markets Authority (the Authority) to introduce two new balancing services to support it in balancing the system, given margins are expected to tighten in the middle of the decade. The Authority must now either accept or reject either or both of the proposed new services, having regard also to the criteria set out in our open letter in June 2013. That is, that a) NGET’s procurement must be economic and efficient and the services must represent value for money to electricity consumers; b) NGET’s design and proposed use of the new services must minimise unintended consequences to market participants and the operation of the market; and c) NGET’s procurement process must be objective and transparent.
Our impact assessment sets out a combination of qualitative and quantitative analyses of the potential impacts of NGET’s application, focussing on competition and consumers. There are limits to the quantitative analysis undertaken due to the time available and the information we have. We have however taken what we see as an appropriate and proportionate approach to help stakeholders consider the potential impacts and help them engage in this consultation.
We have published this impact assessment to seek your views on the likely impacts of the proposed new balancing services, so that they can be taken into account when the Authority makes its decision in December. We will publish this decision by 16 December 2013.
Respond name
Julian Roberts