Power Grid

28 Jun 2020

UK Grid Balancing Costs Deferred

28 Jun 2020  by   

The UK energy regulator Ofgem has agreed to the deferral of extra grid balancing costs arising from the impact of the coronavirus pandemic.

Ofgem has signed off on a deal capping the price of BSUoS at £15/MWh

The decision means BSUoS charges will be capped at £15 a megawatt-hour for settlement periods between the 25 June and 31 August.

National Grid ESO will recover excess charges equally across settlement periods in 2021/22.

A number of other options for deferring charges were considered by Ofgem but rejected.

The decision came after SSE proposed deferral of payment for additional balancing costs – which could total £500m – resulting from the coronavirus pandemic.

The energy company filed an urgent request to Ofgem arguing that the bill for extra costs National Grid ESO is running up to turn down generation, as industrial demand has slumped, should be deferred till next year.

It had warned the unforeseen charges could hit generators and suppliers and risk some going bust.

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