Recovery of transmission outage compensation costs

Ofgem consultation (11 pages, scanned PDF) on possible arrangements for National Grid to recover from the costs of paying compensation to generators under modification CAP048 of the Connection and Use of System Code for temporary disconnection due to planned or unplanned network outages. Ofgem's "preferred option" is to add a term to the three transmission network price controls to allow pass-through of "efficiently incurred" compensation costs, although the allocation of these costs between National Grid, SP Transmission and Scottish Hydro-Electric Transmission is described as "problematic". This would be an interim arrangement covering costs incurred in "the first 2 years of the price control period" (presumably 2007/2008 and 2008/2009), with a review to follow. Responses by Friday 20 April 2007.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, Price controls.

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