Resources

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?

  1. BSUoS should be levied on Final Demand

How should BSUoS be recovered?

  1. BSUoS should be a volumetric (£/MWh) charge
  2. BSUoS charges should be fixed ex ante
  3. 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

Final Report

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.

Final Report

Annex - Consultation Responses

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

30 January 2020 - Agenda, Presentation, Meeting SummaryPodcast summarising what happened at the first meeting.

12 February 2020 - Agenda, Presentation, Meeting Headline Report, Meeting Summary

25 February 2020 - Agenda, Presentation, Meeting Headline Report, Meeting SummaryPodcast on the progress of the Second Balancing Services Charges Task Force.

11 March 2020 - Agenda, Presentation, Meeting Headline Report, Meeting Summary

1 April 2020 - Agenda, Presentation, Meeting Headline ReportPodcast

8 July 2020 - Agenda, Presentation, Action Log, Meeting Headline Report

20 July 2020 - Interim Report, Update and Q&A Webinar, Presentation

11 August 2020 - Second Balancing Services Task Force – Mid Consultation Q&A Session Webinar, Presentation

2 September 2020 - Agenda, Presentation, Meeting Headline Report

9 September 2020 - Agenda, Presentation, Meeting Headline Report

17 September 2020 - Agenda, Presentation

 

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:

 

To view the Terms of Reference and find contact details for Task Force Members go to the Second Balancing Services Charges Task Force Resources.