Decision on proposed modifications to Interconnector (UK)’s Charging Methodology and Access Rules


Publication date

Industry sector

  • Transmission Network
  • Generation and Wholesale Market

On 2 December 2016, Interconnector (UK) (‘IUK’) proposed modifications to its charging methodology and access rules to the Authority for approval.

After careful consideration, we have decided not to approve the proposed modifications to IUK’s charging methodology and access rules. We have made this decision on the basis that we are not satisfied that the proposed modifications meet the relevant charging methodology objectives and access rules objectives, as required under IUK’s licence.

In particular, we are not satisfied the proposals meet the objective that the charging methodology and access rules be “compliant with the Regulation and any relevant legally binding decision of the European Commission and/or Agency” as the proposals are not compliant with the European network code on Capacity Allocation Mechanisms (CAM).

Ofgem’s letter and the annexed directions set out the Authority’s decision not to approve the submitted proposals. It also explains the reasons for our decision under section 38A of the Gas Act 1986.

For further information on IUK’s access rules and charging methodology, please visit the IUK Website.