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British Energy ComplianceUTILITIES · ADVISORY · ASSURANCE
BSUoS

Balancing Services Use of System

The charge that recovers the cost of balancing the national transmission system in real time; restructured in 2023 to be paid by generators only on the demand side.

BSUoS recovers the cost incurred by the national system operator (NESO) in keeping the transmission system in real-time balance — frequency response, reserve, reactive power, constraint management and so on. Historically, BSUoS was paid half-and-half by generators and demand customers and was charged as a half-hourly volumetric pence-per-kWh adjustment that varied substantially by settlement period.

From April 2023, Ofgem's BSUoS reform moved the demand-side share to a fixed daily charge calibrated annually, removing the half-hourly volatility that previously made BSUoS one of the harder cost components to budget for. The customer-facing implications:

  • BSUoS is now a more predictable cost, set once per year.
  • Real-time demand-side management for BSUoS avoidance no longer applies — the cost is independent of when within the day you consume.
  • Suppliers should pass BSUoS through transparently rather than bundling it into a forecast unit-rate adder.

For procurement, the change has reduced one source of basis risk in fixed contracts and made flexible contracts somewhat easier to compare against fixed alternatives.

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