Direction in respect of EMR preparatory costs
Decision
Publication date
Industry sector
Generation and Wholesale Market
This letter sets out our determination of the adjustment to allowed revenues, as a result of comparing the initial amount of allowed revenue for the licensee’s internal costs associated with preparing for the performance of EMR functions with the actual efficiently incurred incremental internal costs for performing this work.
Pursuant to SpC 4A paragraphs 4 and 9-10, this adjustment value, which is represented by the term SOEMRCOt, is to be determined by the Authority by 31 March 2016 in respect of 2016/17 and will have the value of zero for all other years of the price control.
We have determined the value of SOEMRCOt for 2016/17 to be -£7.4m.