1. CMP277 ‘Special License Condition 4J’ CMP278 ‘BSIS 2017 Housekeeping’
CUSC Panel – 26 May 2017
Heena Chauhan

2. CMP277 ‘Special License Condition 4J’
New NGET License Condition due to come into effect and be applied retrospectively from 1 April 2017
Allows the SO to proactively procure Commercial Operational Services from the Scottish TOs, in order to minimise whole system costs, e.g. could build a temporary bypass circuit to alleviate a transmission constraint thereby lowering BSUoS costs
CUSC needs updated to reflect the new terms in the License definition of External BSUoS costs
CUSC (example BSUoS calculation) needs updated in a similar way

3. CMP278 ‘BSIS 2017 Housekeeping’
Changes to NGET/SO License due to be applied retrospectively from 1 April 2017 relating to Balancing Services Incentive Scheme (BSIS)
Cap/Collar/Sharing factor of BSIS changed from £30mn/-£30mn/30% to £10mn/-£10mn/10%
Some minor modifications to terminology in definition of External BSUoS costs and Incentivised Balancing Costs
Requires modification to CUSC and example BSUoS calculation 14.32

4. CUSC Drivers
Both mods are positively aligned with CUSC Charging Objectives (b) and (c):
(b) That compliance with the use of system charging methodology results in charges which reflect, as far as is reasonably practicable, the costs (excluding any payments between transmission licensees which are made under and accordance with the STC) incurred by transmission licensees in their transmission businesses and which are compatible with standard licence condition C26 requirements of a connect and manage connection);
(c) That, so far as is consistent with sub-paragraphs (a) and (b), the use of system charging methodology, as far as is reasonably practicable, properly takes account of the developments in transmission licensees’ transmission businesses*;

5. Code Administrator Conclusions
1 responses were received to the Code Administrator Consultation.
Respondent supported that proposal

6. National Grid View For CMP277 For CMP278
National Grid consider that this modification impacts objective b) and c) positively as it properly accounts for changes in costs incurred and takes into account developments by licensees in their transmission business. transmission business.
For CMP278
National Grid consider that this modification impacts b) and c) positively as it efficiently aligns the methodology with the latest incentive scheme and takes into account developments in the license's transmission business

7. Questions before Panel Determination Vote?

8. Panel Recommendation Vote – Charging Objectives
(a) That compliance with the use of system charging methodology facilitates effective competition in the generation and supply of electricity and (so far as is consistent therewith) facilitates competition in the sale, distribution and purchase of electricity;
(b) That compliance with the use of system charging methodology results in charges which reflect, as far as is reasonably practicable, the costs (excluding any payments between transmission licensees which are made under and accordance with the STC) incurred by transmission licensees in their transmission businesses and which are compatible with standard licence condition C26 requirements of a connect and manage connection);
(c) That, so far as is consistent with sub-paragraphs (a) and (b), the use of system charging methodology, as far as is reasonably practicable, properly takes account of the developments in transmission licensees’ transmission businesses*;
(d) Compliance with the Electricity Regulation and any relevant legally binding decision of the European Commission and/or the Agency. These are defined within the National Grid Electricity Transmission plc Licence under Standard Condition C10, paragraph 1; and
(e) Promoting efficiency in the implementation and administration of the CUSC arrangements.
*Objective (c) refers specifically to European Regulation 2009/714/EC. Reference to the Agency is to the Agency for the Cooperation of Energy Regulators (ACER).

9. CMP277 ‘Special License Condition 4J’ CMP278 ‘BSIS 2017 Housekeeping’
Panel Determination

10. Self Governance Timetable CMP277 and CMP278
3 April 2017
Code Administrator consultation issued (20 WD)
5 May 2017
Deadline for responses
11 May 2017
Draft CUSC Modification Report issued for industry comment
18 May 2017
Deadline for comment
Draft CUSC Modification Report issued to CUSC Panel
26 May 2017
CUSC Panel determination vote
30 May 2017
Appeals window open (15WD)
20 June 2017
Appeals window closes
22 June 2017
Decision implemented in CUSC