Notice to modify the RIIO-ET1 PCFM with respect to the allocation of Innovation Roll-out mechanism costs in SPTL

Publication date
6th August 2019
Information type
Policy area

In accordance with SC 5A of the Electricity Transmission Licence, we are consulting on the following proposed modification to the ET1 Price Control Financial Model (PCFM).

  • The reallocation of SPTL’s Innovation Roll-out mechanism expenditure from various capex and opex categories to 100% load related capex expenditure.

This modification to the ET1 PCFM has been agreed with the licensee to ensure that the allocation in the ET1 PCFM is consistent with the licensee’s Cost and Output reporting template, wherein these costs have historically ben recognised as 100% load related capex expenditure.

It is our view that the amendment of allocation percentages does not constitute a significant modification under SC 5A, part A. This modification serves to reallocate the licensee’s existing allowed expenditure between expenditure categories and will have no impact on allowed expenditure or allowed revenue.

Please respond to this proposed modification no later than 04 September 2019. We intend for this modification to be included within the Annual Iteration Process, due to conclude on 30 November 2019.