Costs of temporary disconnection (CAP048): licence changes

Final licence modifications (42 pages, PDF) for electricity transmission companies in Great Britain allowing them to recover through price controlled revenues the cost of compensation payments to generators under new provisions (CAP048) of the Connection and Use of System Code.

The system is a cost pass-through (although Ofgem has previously said that it might try to change this from 2009). National Grid is entitled to interest at 6.25 per cent over RPI for past costs. Scottish companies are entitled to “any financing or other costs such as to ensure that the financial position and performance of the licensee is, insofar as is reasonably practicable, the same as if those costs had not been incurred” (but Ofgem has previously said that there were no historical costs for Scottish companies, and its original draft (40 pages, PDF) did not provide for interest at all).

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem.

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