Decision on Licence Mods to effect the CMA Cost Order - Condition 8 & amendment to K term
Year | 2018 |
Published date | 05 June 2018 |
Energy Sector | Electricity Networks |
SONI: Article14 (8) Notice and
Licence Modification Decision
Decision on Licence Modifications to
effect the CMA Cost order, Condition
8 and an amendment to the K Term.
05 June 2018
About the UR
The Utility Regulator is the independent non-ministerial government department
responsible for regulating Northern Ireland’s electricity, gas, water and sewerage
industries and to promote the short and long-term interests of consumers.
We are not a policy-making department of government, but we make sure that the
energy and water utility industries in Northern Ireland are regulated and developed
within ministerial policy as set out in our statutory duties.
We are governed by a Board of Directors and are accountable to the Northern Ireland
Assembly through financial and annual reporting obligations.
We are based at Queens House in the centre of Belfast. The Chief Executive leads a
management team of directors representing each of the key functional areas in the
organisation: Corporate Affairs; Electricity; Gas; Retail and Social; and Water. The staff
team includes economists, engineers, accountants, utility specialists, legal advisors and
administration professionals.
Value and sustainability in energy and water.
We will make a difference for consumers by
listening, innovating and leading.
Our Mission
Be a best practice
regulator: transparent, consistent, proportional,
accountable,
and
targeted.
Be a united
team.
Be
collaborative
and
co-operative.
Be
professional.
Listen and
explain.
Make a
difference.
Act with
integrity
.
Our Vision
Our Values
1 | P a g e
Abstract
Audience
Consumer
impact
This paper sets out the Utility Regulator’s (UR’s) decision on changes to the TSO
licence held by SONI. The modifications provide clarity on SONI's maximum core
SSS/TUoS revenue, following the CMA Cost Order of 30 January 2018 and
implement a change to the K-term to ensure continuity between price controls.
There are two decisions required to effectively implement the CMA Cost Order:
1. Exclusion of SONI's costs incurred in relation to the CMA appeal from the
50:50 cost risk share mechanism;
2. An explicit provision for SONI to make a claim to the UR to recover from
customers any fees payable by it in Relevant Year t under Condition 8 of the
transmission Licence (such fees may include, among other things, UR costs
relating the CMA appeal).
This decision also modifies the licence within Annex 1 paragraph 2.2 to enable the
KTSOt adjustment to bridge between price control periods.
These modifications will give protection to Northern Ireland consumers by allocating
the costs as specified in the CMA Cost Order as outlined, avoiding any over-recovery
of SONI’s costs relating to the CMA appeal.
This document is likely to be of interest to SONI, NIE Networks, electricity
customers, other regulated companies in the energy industry, government and
other statutory bodies and consumer groups with an interest in the energy industry.
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