Ofgem announce their views on the Second Balancing Services Charges Task Force
Ofgem has published their final view on the findings of the Second Balancing Services Charges Task Force, which concluded in September 2020.
Ofgem are supportive in principle of the recommendations put forwards by the Task Force.
The Task Force recommended that:
Who Should Pay BSUoS?
- BSUoS should be levied on Final Demand
How should BSUoS be recovered?
- BSUoS should be a volumetric (£/MWh) charge
- BSUoS charges should be fixed ex ante
- The combined length of fix and notice period should be 14/15 months
What are the next steps?
Ofgem has indicated that solutions to deliver the Task Force’s recommendations will be developed through the code modification process. To support their evaluation of these proposals, Ofgem will undertake further work to:
- Explore the cashflow exposure to the ESO of managing a fixed BSUoS charge and any alternatives for which a different party manages the risk
- Undertake quantitative analysis to assess the net benefits of the proposals and the potential impact on energy intensive users
Read Ofgem's letter on its views on the findings of the Task Force.
Second Balancing Services Charges Task Force
The Final Report of the Second Balancing Services Charges Task Force has now been published and sent Ofgem for consideration of the Task Force’s recommendations.
The Second Balancing Services Task Force was launched by the ESO in January 2020, at Ofgem’s request of 21 November 2019, and built on the work of the First Balancing Services Task Force (January 2019 – May 2019).
The Task Force had two deliverables to consider:
1) Who should be liable for Balancing Services Charges, and;
2) How these charges should be recovered.
Interim Report and Consultation
The interim report and consultation closed 26 August 2020 the report can still be viewed here.
Task Force Meeting Resources
Getting in touch
If you have any questions about any of the Second Balancing Services Charges Task Force, please don't hesitate to ask us:
- Charging Futures Lead Secretariat - National Grid ESO - [email protected]
To view the Terms of Reference and find contact details for Task Force Members go to the Second Balancing Services Charges Task Force Resources.