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

28
RIIO-T1 and GD1: Draft licence conditions – First informal licence drafting
consultation
2.68. Our intention is not to alter the broad purpose of the existing condition.
2.69. The purpose of this new draft condition (replacing Part 2 (ii) of SpC AA5A) is
to provide for the funding of the baseline revenue that we propose to allow for the
System Operator internal costs. This is the capital expenditure that enables the SO
to carry out its role in operating the system. This condition brings together the
elements of SO internal allowed revenue calculated in other licence conditions.
Therefore, there may be a need to add in/remove terms once other licence
conditions are finalised.
2.70. The new specific SO external cost condition (ETC 127) will be developed as
part of the review of external SO incentives for 2013.
Table 2.2: Proposed new structure of SpC AA5A under RIIO
Existing condition
Proposed new structure In conjunction
reference
with
Part 1 Remove – no substantive reason to
retain.
RIIO-T1
Part 2 (i) – SO external costs Propose to introduce a separate SO 2013
condition
(ETC127).
for SO external costs
33
Part 2 (ii) – SO internal costs Remains within this licence condition
(ETC12 ) with the existing income
adjusting event term (IAT) being
moved to a specific condition ETC117:
Arrangements for the recovery of SO
uncertain costs
RIIO-T1
Part 2 (iii) Information on Move the data reporting requirements RIIO-T1/SO 2013
balancing services
into the RIGs and then remove from
face of the licence.
Part 2 (iv) TO incentives Incorporate within the created SO
external costs condition along with
definition of „ON‟ and „IONT‟ from Part
2 (ii).
SO 2013
Special Condition AA5C: Information to be Provided to the Authority in
Connection with the Transmission Network Revenue Restriction (NGET), and
Special Condition L2: Transmission losses reporting (SPTL and SHETL)
[ETC45]
Drafting status: Proposal to remove and be replaced by ETC45:Transmission losses.
Current working draft provided in Supporting Document 1.
2.71. The purpose of this condition is to set requirements for the Licensee to report
to stakeholders annually in relation to transmission losses on the Licensee‟s
transmission system and the steps the Licensee is taking to contribute to a lower
level of transmission losses on the Licensee‟s transmission system.
33 System Operator incentive schemes from 2013: Initial Proposals