OFGEM CBCA Decision Letter
| Year | 2014 |
| Published date | 30 June 2014 |
| Energy Sector | Gas |
The Office of Gas and Electricity Markets
9 Millbank London SW1P 3GE Tel 020 7901 7000 Fax 020 7901 7066 www.ofgem.gov.uk
Dear Mr Regan
Cross-Border Cost Allocation application submitted by Sh annon LNG: Final
decision
I am writing with details of the final decision of the Gas and Electricity Markets Authority
1
,
the National Regulatory Authority for Great Britain, on a cross-bo rder cost allocation
application (the “CBCA application”) made by Shannon LNG. Th e letter sets out the context
and our analysis of the CBCA application as well as the reasons fo r our decision.
Based on this final decision we intend to enter into a coordinat ed decision (the “Coordinated
CBCA decision”) on the CBCA application. The other parties to the Coordinated CBCA
decision are the Commission for Energy Regulation (CER) and the Utility Regulator of
Northern Ireland (URNI). The Coordinated CBCA decision i s attached to this letter in Annex
1. We, CER and URNI are collectively referred to in this letter as “NRAs”.
Our decision is that we have agreed to allocate all costs to Ireland.
Background
On 6 November 2013, Shannon LNG submitted its CBCA appli cation to the NRAs under
Regulation (EU) No 347/2013 (the “Regulation”).
2
The Regulation lays down the rules for the timely development and in teroperability of
trans-European energy networks. This is to achieve the energy poli cy objectives of the
Treaty on the Functioning of the European Union. In particul ar this is to ensure the
functioning of the internal energy market and security of supply i n the European Union, to
promote energy efficiency and energy saving and the development of new and re newable
forms of energy, and to promote the interconnection of networks. Th e Regulation sets out
the framework for identifying and prioritising projects necessary to impl ement the energy
infrastructure priority corridors across Europe. These Projects are d efined under the
Regulation as “projects of common interest” (“PCIs”). The entities devel oping PCIs are
defined under the Regulation, as “project promoters”. The first li st of PCIs determined
under the Regulation was adopted by the European Commission on 14 October 2013 (the
“first Union list”).
3
1
The Authority is supported by the Office of Gas and Electricity Markets (Ofgem). The terms “we”, “Ofgem” and
“Authority” are used interchangeably in this letter.
2
Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013
on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending
Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009.
3
Commission Delegated Regulation (EU) No 1391/2013 of 14 October 2013 amending Regulation (EU) No
347/2013 of the European Parliament and of the Council on guidelines for trans-European energy infrastructure as
regards the Union list of projects of common interest
Martin Regan
Commercial Manager
Shannon LNG
15 Windsor Terrace
Sandycove
Co. Dublin
Ireland
Direct Dial: 020 7901 7159
Email: andrew.burgess@ofgem.gov.uk
Date: 17 June 2014
To continue reading
Request your trial