ScottishPower EnergyNetworks proposals (72 pages, PDF) to implement the G3 "forward cost pricing" method to set its electricity distribution use of system charges.

The company has also published additional documentation on this proposal, including reviews by Frontier Economics (58 pages, PDF) and Reckon LLP (16 pages, PDF).

Ofgem consultation (11 pages, PDF) on ScottishPower EnergyNetworks' proposal (30 pages, PDF) to change the basis of calculation of electricity distribution use of system charges for independent distribution network operators. Responses by Tuesday 17 June 2008.

Ofgem consultation (9 pages, PDF) on the recovery of the costs of the participation of National Grid (as GB system operator) in a voluntary arrangement between European transmission system operators for mutual "compensation" in respect of cross-border flows. Ofgem proposes to allow net payments made by National Grid (estimated at more than £7 million a year) to be recovered through domestic price controls, but not to make adjustments for National Grid's own costs or exchange rate differences.

Neither this document nor the November 2007 board minutes (6 pages, PDF) recording consent in principle for recovery explain the benefits to GB system users of National Grid's participation in this voluntary inter-TSO scheme. The only explanation provided by Ofgem appears to be that the costs are warranted by its desire to support the development of a compulsory EU scheme. According to Ofgem:

The association of European Transmission System Operator ("ETSO") has developed the 2008/9 scheme for the two calendar years 2008 and 2009. The terms of the circulated agreement contained a clause with the effect that if one or more TSO did not receive the support of their national regulator for their participation in the 2008/9 scheme, then the scheme would become null and void for all signatories. We understand that only with full participation could ETSO and the EC be confident of progressing mandatory ITC [inter-TSO compensation] Guidelines within the two year timescale (i.e. for implementation from 1 January 2010).

Responses by Thursday 12 June 2008.

EDF Energy Networks report (39 pages, PDF) on its January 2008 consultation on proposals to implement a method including a "LRIC" element for calculating electricity distribution use of system charges on its networks in the South and East of England. The responses received are included in full in the report. No major changes to the proposals appear to have been made, and no timetable is given for a formal modification proposal.

Ofgem conclusions (5 pages, PDF) and proposals (177 pages, PDF) for simplification of electricity distribution licence conditions. Representations by Thursday 29 May 2008.

European Commission decision (77 pages, PDF, now a broken link) finding that Greece had breached Article 86(1) in conjunction with Article 82 by granting special rights to lignite to the largest electricity generator.

The decision was made on 5 March 2008. A one-page summary was put in the Official Journal on 15 April 2008. The full decision was on the relevant page of DG Competition's website on 24 April 2008.

Update, 3 May 2008: The full decision has been removed from the DG Competition's website. I have a copy of the file that was available on 25 April 2008 if anyone is interested (or wants to give me a good reason why it should not be relied on or quoted from). Franck

Archive (3.5M ZIP) of presentations and papers presented at an Energy Networks Association meeting on distribution network charging held on 8 April 2008.

Report (65 pages, PDF) of an industry working group established by Ofgem and the Government to consider the allocation of responsibilities between the owners of offshore transmission network and National Grid (which has been appointed by Government as a mandatory system operator). The report recommends extending and adapting the existing arrangements for Scottish onshore transmission networks.

The report is dated February 2008 but was published in mid April 2008.

Fourth version (64 pages, PDF) of Ofgem's instructions and guidance for the information about revenues to be supplied in the annual returns of electricity distribution network operators.

Ofgem announcement (1 page, PDF) that it will investigate allegations that Scottish electricity generators have abused a dominant position. According to this article in The Times, the allegations relate to high balancing mechanism payments to generators at a time where there was a shortage of power in Scotland due to scheduled plant outages (combined with the physical limitations of transmission capacity between England and Scotland).

Speculation, 17 April 2008: Ofgem's announcement is limited to allegations of “abuse of a dominant position in the electricity generation sector”. There is no allegation that ScottishPower and Scottish & Southern have in any way exchanged information to co-ordinate their prices or the outages that might have led to the supply shortage, or that their ownership of transmission networks has any relevance. Instead it seems that Ofgem wants to investigate the outage decisions that each company made individually, and the pricing strategies that each generator adopted once the unusual situation of a supply shortage had arisen.

For this to be characterised as an abuse of a dominant position, it seems to me that Ofgem would need to establish:

• that there was a relevant market limited to Scotland at the time (debunking any claim that establishing a single set of GB-wide trading arrangements through BETTA had led to a single market in economic terms);
• that ScottishPower and Scottish & Southern held a dominant position in such a market (presumably collectively, in the absence of relevant transmission constraints within Scotland); and
• that the prices offered were excessive or the withdrawal of supply through outages were unjustified, probably in an exploitative abuse sense.

This interpretation would be consistent with Ofgem's previous comments on the relevance of exploitative abuse to allegations of overcharging in the balancing mechanism. Franck

Proposed modification (30 pages, PDF, now a broken link) to electricity distribution charging arrangements on the SP Distribution and SP Manweb networks. The proposed changes relate to charges levied on independent distribution network operators serving households. Ofgem has a right of veto over implementation, and has vetoed a previous version.

Update, 2 May 2008: Ofgem has announced its intention to consult on these proposals (1 page, PDF and 1 page, PDF), and ScottishPower EnergyNetworks has produced a revised proposal (30 pages, PDF) specifying a proposed implementation date of 1 October 2008.

Update, 6 May 2008: Ofgem consultation. The original version of the proposal has been deleted from Ofgem's website.