Electricity cannot be stored economically in large quantities, and electricity supply and demand throughout the UK must therefore be balanced on a second by second basis. As System Operator, National Grid is responsible for doing this, and it uses a variety of mechanisms which are collectively known as Balancing Services.

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The costs of operating these services amounted to around £1,000 million in 2013-14.  This briefing for the Energy and Climate Change Select Committee sets out the need for balancing services, the way they operate, and how the costs of these services are recovered.  It also considers a range of wider factors which might affect the provision and cost of balancing activities over the next decade.

May 2014

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