Business energy broker ENER-G Procurement is offering a free ‘Triad warning service’ to help intensive business energy users minimise their costs for peak winter electricity usage.
Transmission Network Use of System (TNUoS) charges for half-hourly customers are based on the three highest half-hour demand periods on the electricity system per annum, known as Triads. The average demand a customer records at the three Triad periods is applied to the TNUoS charge for their part of the network.
The charge is collected by suppliers via electricity bills on behalf of National Grid (and Scottish equivalents). Customers can benefit from reducing their demand in anticipation of a Triad period being declared.
Triads occur when demand picks up due to earlier sunset times when industrial/commercial usage is still high - usually in a half hour between 16:30 and 18:30 on winter evenings and mostly between 17:00 and 17:30. The Triad season runs from the start of November to the end of February, but Triads have to be a minimum of ten days apart. The charges vary by region, with the highest charges in the South of England and London
Customers on simple (non half-hourly) meters are not directly affected as TNUoS charges are bundled up within their rates. However, larger half-hourly metered customers with contracts that incorporate the 'pass-through' of transmission charges will be affected.
These large customers may have the opportunity to influence the amount of TNUoS they have to pay by a combination of minimising demand and maximising on-site generation during the Triad periods.
Businesses should, however, ensure that their supplier will pass the savings back via a 'pass-through' type contract.
For half-hourly customer with a 'pass-through' contract, minimising demand at expected Triad periods will be financially beneficial. This can be achieved either by reducing demand every weekday between 16:00 and 19:00 from November to February, or by precisely targeting the most likely days when demand is highest.
The ability to predict when these peak times will occur is complex and needs to take into account weather patterns and expected electricity usage.
ENER-G Procurement offers all businesses a free Triad Warning Service. This tool can alert large energy users when a Triad is likely to occur so that organisations can work to minimise or avoid these charges.