Direction on Scottish Hydro Electric Transmission's Energy Not Supplied Exceptional Event claim
Decision
- Publication date
- Industry sector
- Transmission Network
- Licence type
- Electricity Transmission Licence
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 July we issued a consultation on our intention to direct that, for the purpose of calculating its volume of energy not supplied, Scottish Hydro Electric Transmission should exclude 806.6 MWh related to two Exceptional Events on its network. The first is for an loss of supply event on their network on 26 November 2021; the second is for an event on 30 January 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, 811.33 MWh related to these Exceptional Events shall be excluded for the 2021/22 Regulatory Year.