How to save money on energy bills by reducing Triad charges
Note: the tariff figures below are based on National Grid settlement period 2022 data, as stated in the original article, and may not reflect current TNUoS rates. Check the latest published charges before using them for planning.
If you are a business owner or energy manager in the UK, you may have heard of Triad charges and wondered what they are and how they affect your energy bills.
What are Triad charges?
Triad charges are a type of network charge that is imposed by the National Grid to recover the cost of maintaining and operating the electricity transmission system. Triad charges are based on your electricity consumption during the three half-hour periods of highest national demand between November and February, known as Triads. These periods are usually between 4:30 pm and 6:30 pm on winter evenings, when industrial and domestic demand peaks. The National Grid announces the Triad periods at the end of March, after the winter season is over.
Triad charges can be significant for businesses with half-hourly meters, as they are calculated by multiplying your average demand during the Triad periods by a regional tariff. The tariff varies depending on your location and can range from £20 to £45 per kilowatt (kW) per year. For example, if your average demand during the Triad periods was 100 kW and your regional tariff was £30 per kW, you would pay £3,000 in Triad charges for the year.
TNUoS (Transmission Network Use of System)
Charges will appear on your electricity bill as TNUoS charge, to recover the costs to build, maintain, operate and improve the transmission system.
For Non-half hourly (NHH) consumers, TNUoS is calculated based on average energy consumption between 4 pm and 7 pm. For HH consumers, it is calculated based on peak consumption during Triad periods (three peaks of highest demand verified by National Grid ESO during November to February). TNUoS accounts for 7-10% of the total costs of the bill.
How to reduce or avoid Triad charges?
The good news is that you can reduce or avoid Triad charges by taking some simple steps to lower your electricity consumption during the peak periods. Here are some tips on how to do that:
- Implement a demand response strategy that allows you to shift or reduce your electricity usage during a Triad alert. This could involve switching to backup generators, batteries or renewable sources, adjusting your production schedules, turning off non-essential equipment or lighting, or using smart devices or appliances that can respond automatically to price signals.
- Monitor and analyse your energy consumption data to identify patterns and opportunities for efficiency improvements. You can use smart meters, sub-meters or energy management software to track your electricity usage in real time and compare it with historical trends and benchmarks. You can also use this data to verify your Triad charges and ensure you are billed correctly.
- Review your energy contract and tariff to see if you can benefit from a more flexible or competitive deal. Some suppliers offer contracts that include Triad avoidance schemes or incentives, such as lower unit rates or rebates, if you reduce your demand during peak periods. You can also negotiate with your supplier to get a better tariff based on your location and consumption profile.
- Self-generation, through Solar PV or wind can remove your reliance on the grid and associated charges and carbon emissions.
By following these steps, you can not only save money on your energy bills by reducing and avoiding Triad charges, but also support your energy efficiency and net-zero targets.
For more data from national grid on the historic data to support the above measures follow the links below;
https://www.nationalgrideso.com/industry-information/charging/triads-data
https://www.nationalgrideso.com/document/130641/download