For expert forecasts and insights on Third Party Costs (TPCs), get our Autumn guide
Since publishing our last TPCs guide in April, the energy landscape has changed again. The Energy Bills Discount Scheme has come into force while some industry modifications and significant code reviews have concluded as others have started.
Our analysis about the impact of these changes, and forecasts for 2023 and beyond, are all within our Autumn edition of the guide. Scroll to the foot of this page to download it, free.
Third Party Costs summary
The substantial increase in wholesale prices means the TPCs portion of a typical energy bill has gone down from 60% to mid-40%. However, the underlying charges for TPCs are still very high compared to the historical data. This means even the smallest changes to TPCs can have significant impact on your energy costs.
We’ve summarised our insights on three of the key TPCs below:
Balancing Services Use of Systems (BSUoS)
There’s a substantial decrease in the upcoming year’s projected costs compared to current tariffs, thanks to a combination of factors.
However, the National Grid Electricity System Operator (NGESO) may revise the Summer 2024 tariff. Also, Ofgem may recover the costs associated with the Future System Operator (FSO) transition through BSUoS charges.
Energy Intensive Industry (EII) changes
Government measures to enhance the competitiveness of EIIs include increasing the Renewable Levy Exemption and, potentially, introducing a new exemption from Capacity Market costs.
In addition, the EII Network Charging Compensation Scheme will neutralise the impact of grid-related charges.
Transmission Network Use of Systems (TNUoS)
There have been no changes to TNUoS since our Spring 2023 update, which forecast TNUoS increases fuelled by inflation expectations and other factors.
Please note that since 1 October 2024, NGESO is now the National Energy System Operator (NESO).
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