National Grid’s proposed new balancing services decision letter
Decision
Publication date
Company
Industry sector
Generation and Wholesale Market
On 12 December 2013 the Authority approved National Grid Electricity Transmission’s (NGET) application of 18 November to introduce two new balancing services: Supplemental Balancing Reserve (SBR) and Demand Side Balancing Reserve (DSBR). These services provide NGET with additional tools to help balance the system in anticipation of tighter generation capacity in the middle of the current decade. This decision letter outlines the nature of and rationale behind the Authority’s decision. As an annex to this decision letter we publish a final impact assessment.
As a result of the Authority’s decision, today, we have published our initial proposals for the funding arrangements which will allow NGET to recover the economic and efficient costs it incurs procuring and utilising these services, should they be needed.