Decision on modifications to NGETs licence in relation to consequential costs from ESO separation
Decision
- Publication date
- Industry sector
- Transmission Network
- Licence type
- Electricity Transmission Licence
This is a decision on modifications to National Grid Electricity Transmission (NGET)’s licence, from our consultation in January this year.
Background
Our licence modifications implement our November 2024 policy decision on funding National Grid plc (NGs)’s consequential costs resulting from the separation of the Electricity System Operator (ESO). They make an adjustment to NGET's totex allowance for the remaining duration of RIIO-2 and introduce requirements related to the Operational Services Agreement with National Energy System Operator.
The modifications to the Special Conditions include the addition of the following:
- SpC 3.42 Consequential Costs recovery from the separation of the ESO term (CCt)
- SpC 9.22 Termination of the Operational Services Agreement
Additionally, our associated modifications to the RIIO-ET2 Price Control Financial Handbook and RIIO-ET2 Price Control Financial Model (PCFM) are available in the subsidiary documents below.