Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what estimate he has made of the cost of stability services to the electricity grid in each of the next five years.

According to data provided by the National Energy System Operator (NESO), the costs of procuring stability services in the Balancing Mechanism for the last five years are as follows:

2019/20 £211m

2020/21 £348m

2021/22 £176m

2022/23 £112m

2023/24 £83m

Based on actions introduced to address the high stability costs faced in 2020/21, NESO do not expect stability costs to increase significantly from 2023/24 levels over the next five years.

NESO also incurs stability costs through its stability network services procurement project. NESO has awarded tenders to five providers across seven sites, securing stability services until 31st March 2026. With a total contract exposure of £328m, NESO expects to save consumers between £52m to £128m over this period as a result of having to take fewer Balancing Mechanism actions to address system stability.