Electricity and gas transmission price controls (Great Britain)

Ofgem consultation (168 pages, PDF) on the reviews of the price controls from April 2007 for National Grid Electricity Transmission (ex NGC), National Grid Gas (ex Transco), SP Transmission and Scottish Hydro-Electric Transmission. This consultation focuses on the arrangements for funding unpredictable investment requirements likely to arise from changes in gas sources and electricity generation patterns, including the impact of new renewable generation on the transmission network.

For electricity transmission, the paper suggests that the current arrangements for approving investment in transmission networks may be replaced with a system based on long-term contractual commitments by transmission network users (e.g. generators), and invites interested parties to present "straw men" options for how such a user commitment regime may work. Despite this interest in making users commit to covering the investment costs that they impose on transmission companies, the paper does not appear to discuss the option of a system based on deep connection charges. A workshop is to be organised by Ofgem in February 2006 to discuss possibilities.

Responses by Monday 30 January 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, Price controls.

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