Transmission Constraint Licence Condition call for input: update and summary of responses
Reports, plans and updates
- Publication date
- Industry sector
- Transmission Network
- Generation and Wholesale Market
Transmission constraints are any limits on the ability of the electricity transmission system – or any part of it – to transmit power from where it is supplied to where it is needed. Where transmission constraints occur, electricity generators can hold a position of market power as the electricity system operator might have limited options to manage the constraint. Standard licence condition 20A of the Generation Licence – the Transmission Constraint Licence Condition (TCLC) – exists to protect against this market power. By prohibiting licensees from obtaining an excessive benefit in relation to bids submitted in the Balancing Mechanism in transmission constraint periods, it helps to keep down balancing costs and, ultimately, consumers’ bills.
In February 2024 we closed a call for input on whether any changes are required to the TCLC to ensure that it is as effective as possible in keeping bills down. To stimulate the conversation the call for input listed five initial options for extending or modifying the TCLC, although stakeholder suggestions were welcome on any other changes that could be made.
This document summarises stakeholder feedback and provides an update on our thinking.