Ofgem’s development of electricity transmission policy is dictated by its statutory obligations, in particular its principal objective to protect the interests of present and future consumers, wherever appropriate by promoting effective competition.
Current transmission policy issues
The government, through DECC, is presently engaging with the industry and Ofgem to ensure that appropriate GB transmission access arrangements are maintained by National Grid Electricity Transmission plc (NGET). These arrangements should provide access to the GB transmission system to parties on a transparent, non-discriminatory basis. Ofgem is playing a critical role in the process to help facilitate the government’s contribution to the EU 2020 targets whilst mitigating the impact on customers, avoiding undue discrimination, and helping to ensure security of supply into the future. Details of this important work can be found in the TAR section of this website.
NGET is required to make offers to users seeking connection to the transmission system. In the interim period before enduring access reform is in place, users may seek earlier connection under the interim connection and manage arrangements we have established. More information is available in the TAR section of the website.
Users of the transmission system pay transmission charges to NGET. Ofgem is committed to the development and maintenance of a non discriminatory, cost reflective transmission charging regime. NGET is responsible for maintaining and proposing changes to its transmission charging methodology. In line with conditions set down in NGET’s licence Ofgem has a role in deciding whether proposed changes contribute towards the objectives of promoting competition, cost reflectivity in pricing and reflecting industry developments.
We are presently working with the transmission licensees on the provisions for the price control rollover for the period 2012/13. This shorter price control period is to allow the price control beyond 2013 to incorporate the findings of the RPI-X@20 project, a two year project to review the workings of the current approach to regulating GB's energy networks.