National Grid rejects Ofgem's balancing charges proposals

Ofgem notice (2 pages, PDF) reporting that National Grid has not accepted Ofgem's February 2006 price control proposals for the GB electricity system operator activity. Ofgem will consider whether to trigger a Competition Commission inquiry or to allow the default regime (full cost pass-through of external balancing expenditure, subject to Ofgem review) to operate for 2006/2007. Ofgem notes that recent cold weather has caused high qualifying expenditure, and that rule change P194 due to be implemented in November 2006 could lead to a reduction in qualifying expenditure. No possibility of a revised price control proposal for 2006/2007 is mentioned.

Short consultation period: Responses by Friday 7 April 2006.

For further information or advice please contact Franck Latrémolière.

Filed under BETTA, Electricity, Ofgem, Price controls.

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