The significant demand reduction due to COVID-19 over the second quarter of 2020 has led to some extreme out-turns in BSUoS value (BSUoS being the charge by which National Grid recovers money from the network to pay for balancing the electricity system). This was generally received as a benefit for embedded generation throughout England and Wales.

The high out-turn value has subsequently led to CMP345, an SSE modification to cap BSUoS at £15.00 per MWh, which was in turn swiftly followed by a Centrica CMP350 modification to cap it £5.00 per MWh.

BSUoS for generators is a benefit in nearly 100% of settlement periods, except in northern Scotland and increasingly southern Scotland. This is due to these regional areas increasingly exporting power to the transmission network rather than importing it, due to the high wind generation compared to overall power demand.

Tracking and evaluating BSUoS across Q2 2020 produced the following statistics:

Q2 2020Per MWh
BSUoS flat average£5.73
Weighted average for a typical wind generator outside of Scotland£5.25
Weighted average for a typical wind generator in northern Scotland-£17.38
Rolling three year average£3.28
Rolling three average prior to COVID 19£3.08
Maximum BSUoS value in Q2 2020£29.97
Minimum BSUoS value in Q2 2020£1.52
Average BSUoS charge 22/5/2020 Day of the maximum value£21.54

The following graph shows BSUoS value during Q2 2020:

BSUoS will not be a charge or a benefit to embedded generation from April 2021 under planned modifications. It will continue to be charged for transmission connected assets and users of power in the UK.

Renewable Exchange has provided validation of historical BSUoS charges from suppliers for renewable generators and asset owners.

For further information please contact [email protected] or call us on 01174 057931.