UK non-commodity charge · System balancing · Electricity
BSUoS (balancing services)
Latest published rate, who sets it, and where it is forecast to go.
What BSUoS (balancing services) is, who sets the rate, what the revenue funds and where it is heading. Rates come from the Purely Energy non-commodity cost data hub; forecasts are our own.
Roughly 1 to 3% of a typical UK business electricity bill
BSUoS (balancing services): what it is, who charges it, and what it pays for
What it is
The BSUoS (balancing services) charge in plain English
Pays for keeping the electricity system balanced second-by-second, matching generation to demand in real time. Covers ancillary services, constraint payments and system reserves. Fixed tariff since April 2023.
Introduced 2001 (NETA). Reformed to fixed tariff from April 2023.
Who charges it
The body that sets the rate
NESO, fixed tariff in two 6-month blocks (H1 Apr-Sep, H2 Oct-Mar)
Unit
p/kWh
Applies to
All electricity supplies
What it pays for
Where the revenue ends up
Real-time electricity system balancing and security of supply
Share of typical bill
1 to 3%
Since the April 2023 BSUoS reform to a fixed tariff, NESO and Ofgem data put balancing services at roughly 1 to 3% of a typical business electricity bill.
Published rate history
| Financial year | Rate | Year on year | Source |
|---|---|---|---|
| 2020/21 | 0.4680p/kWh | - | Published |
| 2021/22 | 1.083p/kWh | +131.4% | Published |
| 2022/23 | 0.8500p/kWh | -21.5% | Published |
| 2023/24 | 1.372p/kWh | +61.4% | Published |
| 2024/25 | 0.9900p/kWh | -27.8% | Published |
| 2025/26 | 1.321p/kWh | +33.5% | Published |
| 2026/27 | 1.312p/kWh | -0.8% | NESO, BSUoS fixed tariffs 2026/27 (29 Dec 2025) |
Forecast trajectory
Forecasts from our non-commodity cost model. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2026 | - | 1.312 | - | - | |
| 2026-27 | 1.250 | 1.440 | 1.700 | med | Based on analysis of balancing cost trends and renewable integration patterns from NESO data |
| 2027-28 | 1.300 | 1.630 | 2.000 | med | Driven by escalating constraint management costs and transmission bottlenecks |
| 2028-29 | 1.400 | 1.740 | 2.400 | low | Wider uncertainty bands reflecting divergent views on transmission investment timing |
| 2029-30 | 1.450 | 1.840 | 2.500 | low | Projected peak rates reflecting continued constraint pressures with weakening confidence |
| 2030-31 | 1.350 | 1.660 | 2.300 | low | Potential moderation assuming transmission reinforcements begin alleviating constraints |
| 2031 | - | 1.338 | - | - | |
| 2031-32 | 1.200 | 1.620 | 2.500 | low | Highly tentative given uncertainty in regulatory and market conditions |
| 2032 | - | 1.364 | - | - | |
| 2032-33 | 1.150 | 1.620 | 2.500 | low | Assumes transmission investments reduce constraints but uncertainty bands widen dramatically |
| 2033 | - | 1.392 | - | - | |
| 2033-34 | 1.100 | 1.640 | 2.600 | low | Speculative projection with compounding uncertainties around market structure |
| 2034 | - | 1.420 | - | - | |
| 2034-35 | 1.050 | 1.650 | 2.700 | low | Speculative due to potential changes in regulatory frameworks and market dynamics |
BSUoS (balancing services) FAQs
What is the BSUoS (balancing services) charge?
Pays for keeping the electricity system balanced second-by-second, matching generation to demand in real time. Covers ancillary services, constraint payments and system reserves. Fixed tariff since April 2023.
Who sets the BSUoS (balancing services) rate?
The BSUoS (balancing services) rate is set by NESO, fixed tariff in two 6-month blocks (H1 Apr-Sep, H2 Oct-Mar).
What does BSUoS (balancing services) pay for?
BSUoS (balancing services) revenue supports Real-time electricity system balancing and security of supply.
What is the latest published BSUoS (balancing services) rate?
For 2026/27, the published BSUoS (balancing services) rate is 1.312 p/kWh.
What is the BSUoS (balancing services) forecast?
Our latest forecast for 2027-28 is 1.630 p/kWh (med confidence). Driven by escalating constraint management costs and transmission bottlenecks
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Rate data from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above; forecasts are modelled from published guidance and market trends, so treat P50 as a central estimate and use P10/P90 for sensitivity. Primary source