CMP276: Socialising TO costs associated with green policies

This modification proposes a reduction in the demand residual element of the TNUoS £/kW (“Triad”) charge by creating two new charge lines for all demand offtakes: (i) with the level of charge based on a fixed charge per MPAN (or alternatively the import meter size of each consumer) and (ii) a simple per kWh charge on all consumers. Currently demand residual is the cost bucket which is left to capture all TO costs that cannot be otherwise allocated. Unless there is change the current methodology this is forecast to lead to high demand TNUoS payments at the time of Triads, which are widely recognised to be unacceptable and unsustainable. Mods CMP264 and CMP265 deal with a subset of the symptoms only, because they define the defect too narrowly. Their definition prohibits the full range of potential solutions being considered, and by excluding certain types of meter and treating some meters differently to others, this inevitably leads to a discriminatory outcome. This modification is defined to address the underlying cause of the escalation in demand residual and proposes a simple, non-discriminatory approach to its resolution which addresses equitable competition in ALL markets, domestic and international, reduces total cost to consumers and has the structure to form an enduring solution.

Modification status: Current - On Hold

Last updated: 22 January 2021

Code Administrator Contact: TBC

Governance Route: Urgent 

Impacts:

* High: This would have a material impact on the cost/revenue of those who manage demand during Triad periods, i.e. embedded generators and those half hourly metered consumers who respond to Triad.

* Medium: This would impact National Grid in modifying the calculations it adopts and data it needs to set TNUoS tariffs. The BSC systems would need slight alteration to allow the correct data flows to NG, but should not require new information to be collected or created. Suppliers' systems may need to provide additional data lines to bill their customers and be able to check the TNUoS bills, but the simplicity of the proposed charging proposals should limit the complexity. Embedded generators not currently benefiting from Triads in full or part (such as solar and wind farms) may see a small incremental increase in revenue from a credit of the per kWh charge element proposed. This modification would indirectly address concerns raised over the competitive position of transmission connected generators vis a vis embedded generation and DSR, most notably in the Capacity Market.

* Low: Non half hourly customers and half hourly customers who do not respond to Triad may see a slight change in their bills.

Documents

Workgroup meetings and summary papers

Workgroup Consultation

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Code Administrator Consultation

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Draft/Final Modification Report

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Decision

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