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It’s always good to use less electricity. And that’s true whether you’re looking at it from an environmental perspective, or simply as someone who wants to reduce your bills and save money. These upsides are clear for both domestic and business electricity customers.
There’s one period of the year where commercial and industrial customers can feel the benefits of using less particularly strongly: the Triad periods. But what exactly are they?
In the UK, our gas and electricity are distributed via a network which is managed by the National Grid. The network itself is made up of thousands of gas pipelines, power lines and electricity interconnectors, as well as facilities to store gas and electricity supplies, spread out across England, Scotland, and Wales. Without the network, our homes, businesses, and public services wouldn’t have access to the supply we need.
Understandably, because of the vital role it plays in serving so many people, the network requires maintenance, extension, and upgrades on a frequent basis. This cost is covered by a charge – the Transmission Network Use of System (TNUoS).
TNUoS is paid by everyone who uses the transmission network, usually in the form of a charge added to your electricity bill by your supplier.
The way it’s calculated will depend on what kind of electricity meter you have. If you have a half-hourly meter (which many businesses do), it’s based on three half-hour periods on three separate days where the national electricity demand is at its highest – the Triad period.
However, if you’re on a half-hourly meter and don’t consume any electricity during these periods, you won’t have TNUoS costs at all for the financial year.
The National Grid doesn’t indicate the exact time a Triad period is going to occur. However, we do know these three half-hour periods will fall between November and February. And there’s always a 10-day gap between them – which is to avoid all the Triads falling on the same day.
Previous dates can also be helpful when it comes to giving a rough idea of when the peak periods might fall. So, for 2021, they fell on:
It’s important to note that there are many factors that could impact when a peak demand period could come into effect – weather, for example, having a particularly big influence.
Normally, they’ll fall between 16:00 and 18:00 on a weekday. Why? Because this is the timeslot in which peak daily industrial and residential demand crosses over.
It depends. If your organisation avoids consuming any electricity during any of these Triad periods, you won’t pay TNUoS. For most industrial and commercial organisations, this is likely to be unrealistic.
So, if you are liable to pay TNUoS based on the half-hourly meter Triad periods, it’ll be calculated based on your tariff, which is then multiplied by your average demand (in kW) for those Triads.
Thankfully, working this out isn’t too complicated. Just follow our example below:
If you use 5,000 kWh of electricity during each of the three Triad periods, you’d multiple each of these three usage figures by 0,5 to get your kW rate. In this example, it would be 10,000 kW.
You’d then add these figures together: 10,000 kW (Triad Period 1) + 10,000 kW (Triad Period 2) + 10,000 kw (Triad Period 3) = 30,000 kW (Triad Period Total).
Divide this figure by three and you’ll have your average kW consumption over the Triad period – in this instance 10,000 kW. This volume is then multiplied by the tariff for your zone to work out your TNUoS charges.
If you don’t have a half-hourly meter, your TNUoS costs are currently calculated on a profiled electricity usage between 16:00 and 19:00 across the year. This is then multiplied by the overall tariff in your zone.
If you’re on a pass-through contract, you could potentially have greater flexibility to reduce the amount of energy your business uses when those Triad periods land. You take on more risk (i.e., if wholesale prices rise, you’ll be exposed), but you could end up paying less as a result.
Those on fixed contracts might pay a slightly higher rate across their contract if they use lots of electricity during these peak demand periods – to cover the cost of TNUoS.
However, there are other steps you can take to prepare and reduce your electricity Triad charges. These include:
Monitoring and reducing consumption during the winter months: It’s not necessarily the most practical or easiest bit of advice to implement – purely because we never know exactly when an electricity Triad is about to occur.
However, resolving to use less electricity during these months where possible could significantly help reduce the amount you pay for TNUoS at the end of the financial year – whether you’re a high-demand electricity organisation or not.
Implement new operational hours for the winter: For example, if your open and close earlier than you normally would, you could potentially reduce the chances of high energy consumption during a Triad.
Sign-up for Triad warnings on electricity: A form of consultancy offered by some suppliers and other organisations in the energy sector, it’s essentially a forecast of when a Triad period might occur.
Typically, these services analyse a mixture of data from various sources, like the Met Office and the National Grid, to deliver alerts to customers of when a Triad might happen – allowing you to reduce your energy consumption during that particular period.
Change is coming. This year (2022/23) will be the last in which the Triads operate.
Following the Targeted Charging Review (TCR), Ofgem announced it would be ending the Triad periods from April 2023. So, beyond this point, there will be no opportunity for Triad avoidance.
Why? The main reason is to ensure all electricity users are treated fairly when it comes to paying TNUoS – rather than businesses who’re able to reduce power consumption during peak usage times getting the benefits. It’ll instead be charged at a fixed rate.
Want to see whether your business could save on its commercial energy bills? Compare the latest gas and electricity tariffs on the market by using our energy comparison tool. Alternatively, speak to one of our energy specialists today by calling: 0800 007 4001.
Disclaimer: Views contained in this email are Utility Bidders however they do not constitute certainty of market movements. Energy prices are volatile and could go up or down. Using prices over the past 10 years it’s clear that the trend of prices continues to rise.
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Rated Excellent on Trustpilot
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Can’t see the address? Enter manually
Let’s save time, can we automatically gather meter information?
? What does this mean?Does your meter number end in any of the following?