CMP261: Ensuring the TNUoS paid by Generators in GB in Charging Year 2015/16 is in compliance with the €2.5/MWh annual average limit set in EU Regulation 838/2010 Part B (3)

Having due regard for Regulation (EC) No 714/2009, the Commission Regulation (EU) No 838/2010 entitled “Guidelines for a Common Regulatory Approach to Transmission Charging” was introduced to provide a common regulatory approach to transmission charging across all the Member States. This Regulation, in Part B (paragraph 3), restricts the annual average transmission charges paid by electricity generators in Great Britain to the range of €0/MWh to €2.50/MWh. The methodology for generation transmission charges in Great Britain is defined in Section 14 of the CUSC. In order to asses the appropriate level of generation transmission charges to be paid by generators in GB in any given charging year National Grid must forecast the following: total TNUoS cost in GB (£) to be recovered from Generators; £/€ exchange rate for the year in question; and total MWh from generating stations which pay TNUoS. These three values allow National Grid to establish a forecast average GB generation transmission cost in €/MWh. If the upper limit of €2.50/MWh is to be exceeded, then National Gird vary the proportion of the Total TNUoS cost in GB (£) to be recovered from Generators in order to bring the charges below the upper limit of €2.50/MWh. It is apparent now that deviations over time from the original (January 2015) forecast of the €/£ exchange rate and the total MWh from generating stations will be such that the average annual generation cost for GB generators in charging year 2015/16 will be substantially in excess of the €2.50/MWh upper limit set in the Regulation. If this defect is not corrected, it will result in an exceedance of the upper limit set in EU Regulation 838/2010 Part B (paragraph 3) of €2.50/MWh for the average annual amount to be recovered from generator in Great Britain in charging year 2015/16.