So, what’s changing?
From 1 April 2023 the way that BSUoS costs are charged could be changing. Ofgem are proposing that costs be charged solely to end customers. As generators will no longer be liable to pay BSUoS charges, the wholesale cost of electricity is likely to fall in line with this reduction in cost.
Previously in an energy contract, the customer would pay approximately half of the BSUoS cost as part of their non-energy costs and the other half would be part of the energy price. Going forward, the whole cost will be charged as the BSUoS element in the non-energy costs, making it simpler and more transparent. This part of the BSUoS reform is expected to be approved by Ofgem in September 2021.
Alongside this change, BSUoS charges will also be made more stable. To coincide with the regulatory year for network costs (DUoS and TNUoS) that runs from 1 April, going forward the annual cost will be confirmed and published the February before so that suppliers and customers can have greater certainty and budget control. It will also be split into a fixed summer and winter cost but will be reconciled annually by the current System Operator, National Grid. The reconciliation will be adjusted into the following year’s charges and recovered equally over each half hourly period. This second part of the reform is expected to be approved by Ofgem in November 2021.
If you’re on a Fixed + Peace of Mind contract, or planning to choose Fixed + Peace of Mind, CMP308 has been built in so you and your customers are fully protected, and you can be assured that the contract will not be reconciled.
Fixed + Standard is a reconcilable product, so EDF will decide whether or not to reconcile any changes in cost to customers once Ofgem has made their final decision on the proposed changes.
When comparing offers from different suppliers it is important to understand how they are handling the changes related to CMP308.
As always, if you have any questions about fixed price products, speak to your EDF Account Manager and they will assist.