CVT Upgrades - TNPP Decision

Published date02 October 2019
Energy SectorElectricity Networks
Northern Ireland Authority for Utility Regulation
Queens House, 14 Queen Street, BELFAST, BT1 6ER
T: +44 (0) 28 9031 1575 F: +44 (0) 28 9031 1740 W: www.niaur.
Sarah Friedel
Group Regulation
SONI Limited
Castlereagh House
12 Manse Road
Ref: NET/E/TH/103
04 July 2019
Dear Sarah,
Re: CVT Upgrades TNPP Approval
Thank you for the capex TNPP submission of the 08 March 2019 regarding CVT
[Capacitor Voltage Transformer] upgrades to address the issue of harmonic current
Annex 1 of the TSO licence defines a transmission network project as:
a) identified, by the Licensee or the Transmission Owner, as a project which is
necessary for the purposes of developing the transmission system;
b) in respect of which the Licensee is, as the Transmission System Operator,
responsible for carrying out activities required to progress the project from the
conceptual design stage to, but not including, the construction stage; and
c) which has been approved by the Authority, following a claim by the Licensee
for such approval in accordance with paragraph 10.1 of this Annex.
Ultimately point c) confirms that it is for the UR to decide what constitutes a TNPP by
way of approval. With respect to the CVT upgrade, we accept the project need, case
for action and the proposed solution.
However, the vast majority of the work involved relates to investigating the issue and
developing a solution. As identified in the TNPP Guidance,
SONI’s initial activities
in developing and completing the proforma for TNPPs are covered by its ex-ante
opex allowance.
We consider that remaining work with respect to project management represents
typical engagement with NIE Networks. Existing opex allowances are therefore
considered to be the appropriate method of remuneration.
SONI Licence, Annex 1, Definitions, p176-177.
See p6, para 1.14 of TNPP Guidance.

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