Authority Direction on SHE Transmission Energy Not Supplied Exceptional Event Claim
Decision
Publication date
Industry sector
Transmission Network
Electricity transmission companies are incentivised under Special Condition 3C (Reliability Incentive Adjustment in Respect of Energy Not Supplied) of their Electricity Transmission Licence to minimise loss of supply to customers. Each year the companies receive a financial reward or penalty in the form of an allowed revenue adjustment (Reliability Incentive Adjustment) based on the total volume of energy not supplied to customers connected to their network. The size of the reward or penalty is calculated based on how the company performed against an annual energy not supplied volume target (measured in MWh).
If the company feels that a loss of supply was caused by an event beyond its reasonable control then it may make a case to the Authority for the event 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 June we issued a notice of our intention to direct that, for the purpose of calculating its volume of energy not supplied, SHE Transmission should exclude 63.88 MWh related to an Exceptional Event on its network on 8 January 2015. After allowing 28 days in which representations can be made, the Authority directs that for the purpose of calculating the licensee’s volume of energy not supplied, 63.88 MWh related to this Exceptional Event shall be excluded. This direction will take effect on and from the 31 July 2015.