Trystan Casey
TRIADs refer to the three half-hour periods of greatest electricity demand on the National Grid during the winter months. The Tri in TRIAD refers to these three periods, while the AD stands for average demand. The TRIAD system was introduced in the 1990s to calculate transmission charges for electricity consumers and incentivize large electricity consumers to reduce consumption during peak demand periods. However, with the rise of distributed power sources and the need for a smarter grid, the TRIAD system is being phased out in favour of a fixed charge approach.
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What You'll Learn
- Triad periods are the three half-hour periods of greatest electricity demand during winter
- Triad avoidance measures can include using diesel generators or turning down production
- Triad-based charging incentivises companies to reduce consumption and save millions of pounds
- Triad warnings help customers reduce electricity consumption during triad periods
- The TNUoS residual charge has been reduced to zero in many areas, minimising the cost benefit of load shifting
Triad periods are the three half-hour periods of greatest electricity demand during winter
TRIADs refer to the three half-hours of greatest electricity demand on the National Grid during the winter period. They occur anytime from November to February, with a mandatory 10-day interval between each TRIAD. These periods typically happen between 5 pm and 6 pm, when both industrial and domestic electricity consumption is at its highest.
TRIAD-based charging was introduced in the 1990s to calculate transmission (TNUoS) charges for electricity consumers. Energy suppliers would charge a monthly TNUoS estimate, and the final charge for the year would be based on actual consumption during the TRIAD periods. This incentivised consumers to reduce their electricity usage during these peak periods, as it would lower their TNUoS payments for the following year.
However, as more consumers became adept at predicting and avoiding TRIAD periods, the charges fell disproportionately on those who couldn't turn down their consumption. In response, Ofgem introduced the Targeted Charging Review (TCR) in 2019, which took effect in April 2023. Under the new system, TNUoS charges are now determined by a site's charging band, based on Authorised Supply Capacity. This change has reduced the cost benefit of load shifting to avoid peak charges.
While the TRIAD model is being phased out, the winter of 2023/24 will likely be the last TRIAD season. Energy providers and consumers can still benefit from TRIAD warnings and predictions by managing their energy usage and reducing consumption during these peak periods.
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Triad avoidance measures can include using diesel generators or turning down production
Triad refers to the three half-hour peak periods during the winter that witness the highest demand for electricity. The term "Triad" is derived from "Tri", referring to the three periods, and "AD", which stands for average demand. These periods occur between November 1 and the end of February, with a minimum gap of 10 days between them. Triad avoidance is a practice employed by businesses to reduce their electricity consumption during these peak periods, which can result in substantial savings.
One Triad avoidance measure is the use of diesel generators. Businesses may opt to start diesel generators to meet their energy demands during Triad periods. However, the government has implemented regulations to limit the use of unabated backup diesel generators for Triad avoidance. Under the Medium Combustion Plant Directive (MCPD), diesel generators must meet stricter emissions limits to be exempt from the directive's controls. This measure aims to reduce air pollution, specifically nitrogen oxide (NOx) emissions.
Another strategy for Triad avoidance is turning down production or reducing electricity consumption during the Triad periods. Businesses may choose to temporarily shut down production processes or reduce their energy usage to avoid the higher costs associated with peak demand. This approach can lead to significant financial savings, especially for large electricity consumers. By optimising their energy usage during these peak periods, businesses can minimise their annual spending on electricity.
Additionally, businesses can explore alternative generation sources or batteries to avoid relying solely on the grid during Triad periods. By utilising their own generation sources, such as on-site generation or batteries, businesses can reduce their demand from the grid and potentially lower their energy costs. This strategy also contributes to a more stable and efficient energy grid by reducing the need for expensive and carbon-intensive power generation during peak demand.
While Triad avoidance measures can provide financial benefits to individual businesses, it is important to note that the practice has faced criticism. Some argue that Triad avoidance can lead to an unfair advantage for larger organisations with more flexible energy consumption options. To address this issue, regulatory changes, such as the Targeted Charging Review (TCR), have been implemented to create a more level playing field for network charges.
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Triad-based charging incentivises companies to reduce consumption and save millions of pounds
Introduced in the 1990s, Triads refer to the three half-hour periods of greatest electricity demand during the winter season. These periods are used to calculate transmission charges for electricity consumers. The Triad system incentivises companies to reduce their electricity consumption during these peak periods, as it can save them millions of pounds.
The Triad periods typically occur between November and February, with a mandatory 10-day interval between each period. They usually take place between 5 pm and 6 pm, when both industrial and domestic consumption tends to peak. However, they can also occur outside this window.
The Triad system has had a significant impact on companies' energy strategies. Businesses have employed various measures to reduce their electricity consumption during Triad periods, such as turning down power consumption when demand is high or utilising their own generation sources or batteries to avoid peak power prices. This has led to a general trend of decreasing Triad demand, making it more challenging to predict when the next Triad will occur.
To assist companies in managing their energy costs, energy service providers offer Triad warning services. These services help companies forecast when Triad periods are likely to occur, allowing them to optimise their energy usage and reduce their exposure to premium prices. By applying data analysis, demand-side response management, and energy market trading expertise, companies can make significant savings with minimal impact on their operations.
While the Triad system has been effective in incentivising companies to reduce consumption during peak periods, it is evolving. In recent years, there have been efforts to reform the way transmission and distribution network charges are calculated. The Targeted Charging Review (TCR), initiated by Ofgem, aims to create a level playing field for network charges. As a result, the industry has moved towards a fixed charge approach, where charges are based on a site's charging band, meter type, and band, rather than peak demand periods. These changes are expected to reduce the incentive to avoid using power at peak times, as the cost benefit of load shifting will be minimal.
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Triad warnings help customers reduce electricity consumption during triad periods
A Triad refers to three half-hour periods of peak electricity demand during the winter season, specifically from November to February. These periods are used to calculate the Transmission Network Use of System (TNUoS) charges for an organisation. The TNUoS charges are based on the average electricity consumption during the three Triad periods.
To help customers reduce their electricity consumption during Triad periods, suppliers often provide Triad warnings in the form of text and email alerts. These warnings allow customers to be notified in advance when a Triad period is likely to occur, giving them the opportunity to reduce their electricity usage during the specified half-hour window. By doing so, customers can lower their energy costs and avoid paying extra charges for electricity used during peak demand.
The Triad warnings are particularly beneficial for heavy electricity users, as optimising their energy consumption during Triad periods can significantly impact their annual spend. For some companies, avoiding large power consumption during Triads can result in substantial cost savings. Additionally, Triad warnings enable customers to manage their energy usage more efficiently, helping to reduce the overall demand on the National Grid.
While Triad-based charging has been in place since the 1990s, predicting Triad periods has become more challenging due to various factors, including the impact of COVID-19 on electricity demand and the increasing number of distributed power sources. As a result, the Triad system is expected to be replaced by a new charging methodology in the winter of 2023/24, which will be based on the size of capacity agreements with the National Grid.
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The TNUoS residual charge has been reduced to zero in many areas, minimising the cost benefit of load shifting
A triad refers to the three half-hour settlement periods with the highest system demand for electricity. They occur during the winter, specifically from 1 November to the end of February, and are at least 10 days apart. Triads usually occur between 5 pm and 6 pm, when both industrial and domestic consumption tends to peak.
Transmission Network Use of System (TNUoS) charges are calculated based on a site's charging band, which is based on its Authorised Supply Capacity (kVA). TNUoS charges are used to recover the costs of installing and maintaining the transmission system in England, Wales, Scotland, and offshore.
Previously, TNUoS charges were determined by Triads, and heavy users of electricity could reduce their annual spend by decreasing their energy usage during these Triad periods. This led to an imbalance, where network users who couldn't reduce their consumption during Triads faced a larger share of paying for system maintenance and upgrades.
To address this issue, the Targeted Charging Review (TCR) was introduced, and since 1 April 2023, the TNUoS residual charge has been changed to a fixed £/site/day charge, no longer determined by Triads. As a result, the TNUoS residual charge has been reduced to zero in many areas, minimizing the cost benefit of load shifting to avoid using power at peak times. This change is expected to have a significant impact on businesses, especially those that previously relied on load shifting to optimize their energy costs.
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Frequently asked questions
TRIAD is an acronym for three half-hours of greatest electricity demand on the National Grid during the winter period, which is used to calculate transmission charges for electricity consumers.
The Triad season runs from November to February, with at least a 10-day interval between any two Triads.
The three half-hour Triad periods are determined retrospectively by the National Grid and are typically between 5 pm and 6 pm, when industrial and domestic consumption tends to peak.
Triads are important as they are used to calculate transmission charges for electricity consumers for the coming financial year. By reducing electricity consumption during Triads, consumers can lower their transmission charges.
To prepare for the Triad season, you can sign up for advance warnings to consider reducing electricity consumption during potential Triad periods. Additionally, you can contact your account manager to discuss ways to optimise your energy usage and gain budget certainty.
