Consultation on cost recovery submissions under the Capacity Allocation and Congestion Management (CACM) Regulation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
On 30 August 2019, we decided on the approach to cost sharing and cost recovery under the Commission Regulation (EU) 2015/1222 on Capacity Allocation and Congestion Management (the “CACM Regulation”).
The August 2019 decision allowed for the recovery of development and operational historical costs incurred by Transmission System Operators ("TSOs”) and Nominated Electricity Market Operators (“NEMOs”) as part of CACM Regulation for the interim period and enduring arrangements.
This decision allowed the recovery of efficiently incurred, reasonable and proportionate development and operational costs through Transmission Network Use of System (“TNUoS”) payments, for the interim period. It also allowed for recovery of development costs that were assessed as efficient, reasonable and proportionate through GB interconnector TSOs, for the enduring arrangements as set out under CACM Regulation. We subsequently received submissions of interim period and enduring development costs from IFA, BritNed, Nemo Link, EWIC and Moyle.
This consultation sets out our minded to position on the amounts for recovery of remaining CACM Regulation historical costs through TNUoS charges and GB interconnector TSOs following our assessment of IFA, BritNed, Nemo Link, EWIC and Moyle submission of interim period and enduring development costs, under CACM Regulation.
We are seeking views on our minded to position ahead of reaching a final decision by January 2024. We welcome responses on our minded-to position from any interested parties.
If you wish to respond to this consultation, please send your views to Mertcan.Agir@ofgem.gov.uk by 26 September 2023.