/ Shell Energy Explains: BSUoS
Shell Energy Explains: BSUoS
28 Jul 2022
This article looks at how BSUoS will change further over the next couple of years and how these changes may impact your business.
The Balancing Services Use of System (BSUoS) charge recovers the day-to-day operational costs of balancing the transmission system, including constraint costs, cost of frequency response services, cost of Balancing Mechanism actions and more. It’s a half hourly charge based on the costs incurred by the Electricity System Operator (ESO), part of National Grid, to balance the system within each half hour settlement period.
Since electricity cannot be stored easily and cheaply, the ESO is responsible for making sure the system is effectively balanced 24-hours a day. If the system wasn’t kept balanced, with energy input to the grid less than consumption demand, there would be a national risk of blackouts. To avoid this situation, the ESO undertakes second-by-second balancing to make sure that supply and demand are met. However, the cost of performing this important function is settled every half hour.
Read our guide to find out more about BSUoS and how the upcoming changes may impact your business.
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