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Issue 896 | CMP315 TNUoS: Review of the Expansion Constant and the Elements of the Transmission Charged For

Issue 896 | CMP315 TNUoS: Review of the Expansion Constant and the Elements of the Transmission Charged For

Josephine Lord Josephine Lord Consultant

1 Assessment & recommendation CMP315 TNUoS: Review of the Expansion Constant and the Elements of the Transmission Charged For was raised by PeakGen on 16 April. It seeks to make changes to the expansion constant and the expansion factors used in the calculation of transmission network use of system (TNUoS) charging methodology for the wider locational charge. It proposes to review both these elements, with a view to increasing the range of transmission assets that are subject to expansion factors, and making the expansion constant more reflective of the useful life and capacity delivered to the transmission system. The impact of the proposed changes could increase the proportion of the charge recovered from the locational part of the charge compared to the residual charge. On 26 April the CUSC Panel sent the proposal to a workgroup, the date to report is still to be confirmed. The proposal would appear to directly impact on Ofgem’s Significant Code Review (SCR) on Access and Forward-looking Charges, launched in December. Ofgem initially did not propose to include the Transport Model (which uses the expansion constant and factors) in the SCR scope. However, following the consultation it decided to include how the “reference node” used in it, although this was not a priority area for change. It said that it did not intend to conduct a wider review of the Transport Model or a wider review of other aspects of the current forward-looking TNUoS charging arrangements but that if new evidence emerges during the ...

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