Decision on Revenue for National Grid Electricity Transmission's (NGET) Role in Electricity Market Reform (EMR)
Licence modification
Publication date
Industry sector
Generation and Wholesale Market
In our April 2014 consultation , we set out how we would assess National Grid Electricity Transmission's (NGET) allowances, outputs and incentives required to deliver its roles under Electricity Market Reform (EMR) from August 2014 to March 2021. These would be set using the RIIO price control model. We proposed to:
- Make provisional allowances of £5m for the first 20 months of operation – August 2014 to March 2016, provided NGET meets the timetable for submitting its full EMR business plan.
- Show how NGET should prepare a well-justified business plan for EMR delivery and how we would treat the costs under RIIO-T1. We suggested that NGET should submit three scenarios within its plan to cater for the uncertainties of planning for a new role.
- Show changes in the licence and Financial Handbook so NGET can recover EMR delivery body costs from customers.
This document sets out our decision to provide NGET with provisional allowances of £5m for the first 20 months of operation – August 2014 to March 2016. We have extended the submission date for NGET’s business plan to 12 January, 2015.