Decision on SP Transmission's Energy Not Supplied Exceptional Event claim
Decision
- Publication date
- Company
- SP Transmission plc
- Industry sector
- Transmission Network
Electricity transmission companies are incentivised under Special Condition 4.2 (Energy Not Supplied output delivery incentive) of their Electricity Transmission Licences to minimise loss of supply to customers. Each year the companies receive a financial reward or penalty depending on the total volume of energy not supplied by their network. The size of the reward or penalty is calculated by comparing how the company performed against an annual energy not supplied volume target (measured in MWh).
If the company considers that a loss of supply episode was caused by an event beyond its reasonable control, then it may make a case to the Authority for it to be designated an Exceptional Event and for all or some of the energy not supplied during the event to be excluded when we calculate its revenue reward or penalty.
In September, we published a consultation on our intention to direct that, for the purpose of calculating its volume of energy not supplied, SP Transmission should exclude 1.6 MWh related to an Exceptional Event that occurred on 14 November 2022. After allowing 28 days in which representations could be made, the Authority directs that for the purpose of calculating the licensee’s volume of energy not supplied, 1.6 MWh related to the event shall be excluded for the 2022/23 regulatory year.