National Grid cost pass-through request partially allowed
Ofgem decision (10 pages, PDF) to allow the recovery from users of £4.9 million of additional electricity system operator costs in 2005/2006, as a result of income adjustment terms totalling £29.5 million. National Grid is automatically entitled to recover 80 per cent of its additional costs through the 2005/2006 SO incentive scheme and these income adjustment terms only affect recovery of the last 20 per cent.
Ofgem's adjustment is 18 per cent lower than the £35.8 million figure suggested by National Grid and consulted on in August 2006.
For 2006/2007 Ofgem has not set any ex ante allowances and all costs will be passed-through subject to an economy and efficiency test.
For further information or advice please contact Franck Latrémolière.
Filed under BETTA, Electricity, Ofgem, Price controls.
