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Helping you make sense of the energy and water sectors

Market research & Insight

Issue 668 | Transmission losses

Issue 668 | Transmission losses

Tom Andrews Tom Andrews Senior Analyst

CMA: Electricity Transmission Losses Order 16 December 2016 1          Assessment and recommendation The Competition and Markets Authority (CMA) issued its final Order on 14 December to support competition in the generation sector by introducing measures that counteract the Locational Pricing Adverse Effect on Competition (AEC). This is intended to address the detriment caused by the situation that the current uniform transmission losses do not accurately allocate costs and lead to cross-subsidisation which impacts competition. The Order comes into force on 15 December 2016, creating a deadline of 1 April 2018 to bring transmission loss pricing into force. We recommend ...

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