Transmission Costs
The costs of operating the National Grid System are recouped by National Grid Electricity Transmission plc (NGET) through levying of Transmission Network Use of System (TNUoS) charges on the users of the system. The costs are split between the generators and the users of electricity.
Tariffs are set annually by NGET, and are zonal in nature—that is, the country is divided up into different zones, each with a different tariff for generation and consumption. In general, tariffs are higher for generators in the north and consumers in the south. This is representative of the fact that there is currently a north-south flow of electricity, and the additional stresses on the system increasing demand in areas of currently high demand causes.
Read more about this topic: National Grid (Great Britain)
Famous quotes containing the word costs:
“To exercise power costs effort and demands courage. That is why so many fail to assert rights to which they are perfectly entitled—because a right is a kind of power but they are too lazy or too cowardly to exercise it. The virtues which cloak these faults are called patience and forbearance.”
—Friedrich Nietzsche (1844–1900)