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Balancing Services

Use of System
Recovering the cost of balancing
supply and demand across the
national electricity network.

Helping our customers.


Were on it.

When the system cant transmit the power generated


at a particular location to where theres a demand for
it, National Grid will reconfigure the system. They may
increase or lower the amount of electricity being supplied
to the system at different locations. The costs incurred
are known as constraint costs and are passed on equally
to generators and suppliers as the Balancing Services
Use of System (BSUoS) charge.

Why is the charge increasing?


T he growth of renewable energy means that generation is becoming more
decentralised with a small number of larger generators being replaced by
a large number of smaller generators. As a result, balancing supply and
demand across the system involves coordinating many more generators.
Because it often depends on the weather, generating electricity from
renewable sources like solar and wind is less predictable and requires
more balancing.
Renewable wind generators are often located far away from areas of high
demand. For example, many wind farms are in Scotland, while much of
the demand comes from the south of England.
To keep the system running, National Grid carries out maintenance and
improvement work, which can make it harder to move electricity around
the country.
When demand for electricity drops, wind farms may need to be paid to
stop generating excess electricity on to the grid.
Balancing services cost (m)
/MWh Monthly average /MWh Annual average /MWh

2.5
2.3
2.1
1.9
1.7
1.5
1.3
1.1
0.9
0.7
0.5
1 Apr 2010

1 Jul 2010

1 Oct 2010

1 Jan 2011

1 Apr 2011

1 Jul 2011

1 Oct 2011

1 Jan 2012

1 Apr 2012

1 Jul 2012

1 Oct 2012

1 Jan 2013

1 Apr 2013

1 Jul 2013

1 Oct 2013
1 Jan 2010

Source: National Grid

Whats likely to happen in the future? What can I do to lower the charge?
As renewable generation carries on growing and theres Your BSUoS charge is based on the energy you use, as
a need for significant investment in the transmission and well as the published BSUoS rates, so you could lower
distribution network, we believe that BSUoS charges are the charge by using less electricity.
likely to stay volatile for the foreseeable future.
*There are times when we may change your prices.
Please see Terms and Conditions for details.
How we charge
National Grid publishes BSUoS rates in arrears so we dont
know what theyll be in advance. To help you budget, well To find out more visit:
predict what your BSUoS charge is likely to be based on your www2.nationalgrid.com/bsuos
demand and the length of your contract or invoice period.
ofgem.gov.uk
A choice of ways to pay:
Were here to help
More certainty on your prices
Our dedicated team is here to help, whatever your
If you want more certainty of your energy costs and
business needs.
want to know exactly what your BSUoS rate is likely to
be* throughout your contract, we can base the charge Call 02476 424242 (select option 3 for Corporates)
on our own forecast. Your quoted unit rate will include
Were here from 8.30am - 5pm Monday to Thursday
the BSUoS charge.
and 8.30am - 4pm on Friday.
Pass through for greater flexibility
If you want to pay the actual charge, we can pass it
Or visit eonenergy.com/corporates
through to you when we invoice, instead of including it in
your unit rates. To help you plan ahead, well still provide
an estimated cost as part of your quote. Your invoice will
include the BSUoS charge based on our latest forecast and
once the actual rates are published, well reconcile your
BSUoS charge as needed, every six months.

The information (including any forecasts or projections) contained in this document (the Information) reflects the views and opinions of E.ON on 4 July 2014. The Information
is intended as a guide only and nothing contained within this document is to be taken, or relied upon, as advice. E.ON makes no warranties, representations or undertakings
about any of the Information (including, without limitation, any as to its quality, accuracy, completeness or fitness for any particular purpose) and E.ON accepts no liability
whatsoever for any action or omission taken by you in relation to the Information. Any reliance you place on the Information is solely at your own risk. This document is the
property of E.ON and you may not copy, modify, publish, repost or distribute it. E.ON 2014

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