Proposed smearing of energy administration shortfall costs

DTI consultation (25 pages, PDF) proposing to modify the licences of National Grid's electricity GBSO and gas NTS businesses, and of electricity suppliers and gas shippers, to enable the Secretary of State to recover from customers any shortfall costs incurred in the course of an energy administration for a protected (network) company. This would be instead of the mechanism to recover costs through the relevant company's own charges proposed in August 2005.

The proposed licence modifications remove the need to give notice of such increases to charges and allow National Grid to discriminate between charges on the ground of "objective" differences other than cost differences, or "if necessary to give effect to the shortfall direction". Responses by Friday 3 March 2006.

For further information or advice please contact Franck Latrémolière.

Filed under DTI/BERR, Electricity.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon