Grounds for veto of transmission charges proposal

Ofgem letter (15 pages, 2.0M PDF) vetoing National Grid's use of system charging methodology modification proposal ECM-02: negative demand charges, which would have involved a rebalancing of transmission charges from generation to demand and which had been put forward by National Grid as a way of addressing the non-cost-reflectivity associated with the setting to zero of demand charges for which the charging model would give a negative value.

(This scanned version of the letter is on National Grid's website; the letter is not obviously available from Ofgem's site although the veto has been reported in another letter.)

For further information or advice please contact Franck Latrémolière.

Filed under BETTA, Electricity, Ofgem, Price controls.

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