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Consultation on funding National Grid Electricity Transmission plc’s (NGET’s) preparatory costs for its proposed roles in Electricity Market Reform (EMR)

Consultation

Publication date: 20 December 2013
Closing date: 23 January 2014
Industry sector: Transmission Network
Decision: Decision on funding National Grid Electricity plc's preparatory costs for Electricity Market Reform

This consultation, which closes on 23 January 2014, is on our proposals for funding the costs that NGET incurs as it prepares to deliver its proposed roles in EMR.
We are of the view that allowing NGET to recover its preparatory costs before formally taking its proposed roles in EMR is appropriate and in the interests of consumers.
To allow NGET to recover these costs (forecast at £19.3m) we propose amending NGET’s licence. The draft licence condition is set out in Annex 1.
We are taking several steps to protect consumers, including ensuring we can ‘claw back’ the funded costs if NGET do not get the role or otherwise reconcile the costs that are funded against the actual efficient and economic incremental incurred costs.

David O'Neill

Ofgem is the Office of Gas and Electricity Markets.