Approval of statement pursuant to paragraph 6 of Special Condition 8C (Basis of transmission owner charges) of SP Transmission Limited’s electricity transmission licence.

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Transmission Network

Related links

Consultation on proposed modifications to Statements of the Basis for Transmission Owner Charges 2013/14

Company Secretary
SP Transmission Limited
1 Atlantic Quay
Robertson Street
Glasgow
G2 8SP

Direct Dial: 0141 331 6014
Email: donald.smith@ofgem.gov.uk

Dear Company Secretary

Approval of statement pursuant to paragraph 6 of Special Condition 8C (Basis of transmission owner charges) of SP Transmission Limited’s electricity transmission licence.

This letter sets out the basis for our decision to approve changes to the charging statement for SP Transmission Ltd (“SPT”).

Background

Under its electricity transmission licence (the “Licence”), SPT is required to have a statement, approved by us, setting out the basis upon which it will charge National Grid Electricity Transmission plc (“NGET”) for services provided. The services comprise:

  • transmission owner (“TO”) services;
  • connections to the licensee’s transmission system; and
  • outage charges.

Pursuant to paragraph 5 of Special Condition (“SC”) 8C, SPTL must, at least once in every year, make necessary revisions to the statement in order that the information set out in the statement shall continue to be accurate in all material respects.  SPTL submitted its revised Statement of the Basis of Transmission Owner Charges (“the Statement”) for approval by the Authority on 30 April 2013.  We published the Statement on 7 June 2013 and invited wider views on the proposed revisions by 8 July 20131.

SPTL’s proposed changes

The changes SPTL propose comprise:

  • the introduction of separate statements of works charges for in area and out of area connections;
  • housekeeping changes, including changes to bring the statement into line with recent amendments to the Licence; and,
  • minor amendments to the application fees contained in appendix 2 of its Statement.

Response to consultation

We received no responses to our consultation.

Our views

We welcome the introduction of separate charges for in area and out of area connections. We consider that these charges will better reflect the costs imposed on SPT in providing statements of works for different connections.

We also continue to encourage all TOs to work together to develop greater consistency between their respective charging statements, and to facilitate the timely and co-ordinated submission of charging statements to us each year.

Authority’s decision

We have considered whether the proposed changes contained in the Statement submitted by SPT are consistent with the requirements of SC 8C and SPT’s wider licence and statutory obligations.  We have also had regard to our principal objective and general duties in considering the Statement. We are satisfied that approval of the changes to the Statement is consistent with these.

Pursuant to paragraph 6 of SC 8C, the Authority hereby approves the revisions contained in the Statement annexed to this letter.

Yours sincerely,

Geoffrey Randall

Head of Networks Policy – Electricity Transmission

Duly authorised on behalf of the Authority

1. See related links above.