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Transmission incentives 3

This entry was added to on 11 January 2005.
Full blog table of contents available at Contents | viewpoint: Franck.

Ofgem put out a press release yesterday announcing the implementation of the "interim" incentive scheme for financial incentives for interruptions on the National Grid transmission network on which it published final proposals in December.

This is the scheme with an effective incentive rate of just under £40,000 per MWh (£40 per unit), and various other questionable incentive effects. (See my earlier comments on the initial proposals and on the final proposals.)

Neil Collins rightly comments in the Daily Telegraph that "the result [...] will be overinvestment in the network, and increases in costs which far outweigh the possible inconvenience saved".

Entry added by Franck Latrémolière on 11 January 2005

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Last changed by Franck at 11:05 AM on Saturday 17 December 2005.

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Reckon Open "Transmission incentives 3 | viewpoint: Franck" 2005-12-17T11:05:56