The next post in our series on Triad, TNUoS & DUoS charges will cover Triad and managing to avoid the three peaks.
What Is A Triad?
Triads are the three highest periods of electricity demand between November and February. The main purpose of a triad is to help reduce peaks in demand. This can be achieved by incentivising businesses to reduce their power consumption during this period.
Used by the National Grid as a method to set the amount energy consumers will pay for their TNUoS, it is then used to determine the annual charge for transmission. This is then passed to the supplier to partly determine the cost of the supply. These costs can be reduced when or if a Triad alert is issued.
Each triad equates to one of the three highest half-hour demand periods and are always more than ten days apart. This is to avoid the three triads falling into consecutive hours of the same day. Usually this period is between 5 and 6 pm when domestic and industrial usage peaks.
Avoiding the three peaks
Your energy usage during a Triad period can have a big impact on your subsequent transmission charges which then make up a large portion of the total of your non-commodity costs. The most important thing to note is that Triad periods cannot be determined in advance, due to the fact they are calculated on a basis of settlement data. To mitigate against these Triad costs, high consumption businesses will want a good idea of when to expect these Triads. Energy companies will email their customers either daily or weekly during Triad season to warn them if there is a medium to high probability of a triad occurring that day. Each company does it differently, but it will usually involve a traffic light system like the one below:
By predicting Triad periods and reducing energy consumption where necessary, as well as employing effective load management, the cost impact can be alleviated, and the three peaks avoided.