CMP361
Connection and Modification Proposal 361
Industry ReformsA reform from April 2023 that made grid balancing costs (BSUoS) predictable by fixing rates six months in advance and recovering 100% from electricity consumers rather than splitting costs with generators.
CMP361 was an industry modification that reformed how Balancing Services Use of System (BSUoS) charges work. Before this change, BSUoS rates varied every half-hour based on the actual costs of balancing the grid that day - making them unpredictable and adding complexity to energy pricing.
Three major changes from CMP361:
1. Fixed rates:
- BSUoS now fixed for six-month periods (April-September, October-March)
- Rates published well in advance for budgeting
- No more half-hourly volatility
2. Demand-only recovery:
- Previously 50/50 split between generators and demand
- Now 100% recovered from demand customers
- Approximately doubled the per-kWh rate
3. Predictable costs:
- Suppliers and customers can budget with confidence
- Removed uncertainty and risk premiums from contracts
- Simpler billing calculations
Impact: The actual cost level depends on system conditions, but knowing the rate in advance makes budgeting more straightforward. While rates approximately doubled due to the 100% demand recovery shift, this was partially offset by reduced risk premiums in wholesale contracts.
Example
CMP361 fixed BSUoS: October 2025 - March 2026 = 1.569 p/kWhRelated terms
Put this into practice
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