RIIO-T1 and GD1: Draft licence conditions – First informal ... - Ofgem

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RIIO-T1 and GD1: Draft licence conditions – First informal licence drafting
consultation
2.43. The effect of the above is to ensure the continuity of the TIRG funding
mechanism during RIIO and we do not expect the changes to materially alter the
existing TIRG licence condition and its purpose.
2.44. As part of discussions with the network companies we identified the ATIRG
term, which forms part of the TIRG revenue formula, and its role during the postincentive
period shadow- RAV to RAV transfer.
2.45. We will consider the transfer methodology in more detail in due course.
However, at this time, we consider that the existing licence provisions would not
automatically allow for the update of the transfer value in line with the approved
income and asset value adjusting events.
2.46. We propose to amend the TIRG condition accordingly to facilitate transfer of
approved adjusting events as part of RAV transfer process. We intend to consult
specifically on TIRG shortly.
2.47. It should be noted that we are not currently proposing any changes to the
associated Annex or Schedule. 24
Special Condition D4 (J4 for SPTL and SHETL): Pass Through Items [ETC 21]
Drafting status: Current working draft provided in Supporting Document 1.
2.48. Our proposed changes to this condition for ET are in line with our proposed
changes to similar provisions for GT and GD. We have therefore outlined our
proposed changes to these common conditions in chapter 7. 25
Special Condition D5 (J5 for SPTL and SHETL): Incentive Payments [ETC 23]
Drafting status: Proposal to delete.
2.49. We propose to delete this condition as provisions and terms within it have
either been moved to other parts of the licence or can be removed as superfluous.
2.50. The provisions relating to efficiently mitigating the leakage of sulphur
hexafluoride are now contained within ETC25: Incentive to Reduce Sulphur
Hexafluoride Emissions 26 and provisions with respect to energy not supplied will be
contained within ETC2: Reliability Incentive Adjust ment in Respect of Energy Not
Supplied. 27
24 Annex to SpC D3 (NGET) and Schedule C to J3 for both SPTL and SHETL).
25 Chapter 7: [GDC/ETC/GTC 21].Allowed pass through items
26 See ETC 25: Incentive to Reduce Sulphur Hexafluoride Emissions below for further details.
27 See ETC 2: Incentive Adjustment in Respect of Energy Not Supplied below for further details.