BSUoS

Electricity grids must be balanced second-by-second - the amount being generated must exactly match what's being consumed, or the system frequency deviates from 50Hz and problems occur. BSUoS charges fund the services needed to maintain this balance, including backup power plants, demand reduction schemes, and frequency response services.

These charges were reformed in April 2023 through a change called CMP361. Previously, BSUoS varied every half-hour based on actual balancing costs, creating unpredictability. Now, rates are fixed every six months in advance, making costs much easier to forecast. Additionally, all BSUoS costs are now recovered from electricity consumers (demand) rather than being shared with generators.

Key changes from CMP361:

• Fixed rates: BSUoS is now a fixed p/kWh rate for each six-month period (April-September and October-March)
• Demand-only recovery: 100% recovered from demand customers (approximately doubled the rate)
• Predictable costs: Rates announced well in advance for budgeting

For most businesses, BSUoS is a relatively small part of the bill, but the reforms have made this cost much more predictable for budgeting purposes.