CMP337: Impact of DNO Contributions on Actual Project Costs and Expansion Factors

This purpose of this CUSC modification is to make simple, minor and mechanistic changes to sections 14.15.75 and 14.15.76 of the CUSC, already agreed in principle by the Authority as reflecting the policy intent of its decision, in order to clarify and remove ambiguity associated with interpretation of the application of the contributions in relation to “actual project costs”. The changes will make clear that a DNO contribution would be applied to reduce the total costs of the new transmission asset to the TO, and would be netted off from the TO’s “actual project costs” in a way which changes no aspect of transmission charging and maintains the exact pro-rating of costs between local and wider TNUoS charge elements as is currently in place.   This modification should be considered in conjunction with the associated new definition of “Cost Adjustment” in the accompanying CUSC mod CMP338- both CUSC modifications should be progressed and approved simultaneously.