Your electricity bill is made up of many different elements and you
are charged using many different methodologies.
Your transmission costs are calculated using a methodology designed to influence peak times of electricity demand on the transmission network.
Although you are paying your Supplier, this charge is actually passed on from the Transmission System Operator – the National Grid. These charges recover the cost of installing and maintaining the National Transmission Network.
How is your cost calculated?
Your transmission costs for the year are calculated from your average demand during the three periods of highest demand on the UK electricity system between 1st November and the end of February. These three periods are termed Triads and must be separated by at least 10 days.
Your average demand during the three Triads is then multiplied by a regional rate (£/kW) to calculate your annual Transmission cost.
Minimising your costs
Significant savings can be made by reducing your demand or switching to onsite generation during a Triad period. This requires knowledge of a Triad period in advance of it occurring. However, Triad periods are only finalised at the end of the winter period when all the data is available.
Many companies including Suppliers offer Triad warning services. These aim to predict Triad periods based on many factors including recent demand levels, historic patterns and relevant temperature/weather data.
Since 1991, all triad periods have been between the times of 16:30 and 18:30. Reducing demand consistently in this period during the winter months will save you money regardless of successful Triad prediction.
Analysing your transmission costs
Analysing your transmission cost exposure
How do I check my performance during the Triad season?
Read this article to find out how your energy platform can help you.
To analyse your transmission costs, you will need to provide additional information to Stark.