CMP344 'Clarification of Transmission Licensee revenue recovery and the treatment of revenue adjustments in the Charging Methodology'

This modification proposal clarifies that the allowed revenue for Transmission Owners recovered from Transmission Users under the Charging Methodologies is fixed for each onshore price control period for onshore transmission licensees and at the point of asset transfer for OFTOs.

- This means that once the revenue recovery is set at the start of the relevant period there can be no additional adjustments to this revenue (apart from under or over recovery factors) that are applied to Transmission Users for that price control period.

This modification proposes that revenue adjustments associated with actual costs incurred and costs saved for a Transmission Licensee that occur within price control periods from unforeseen or unforeseeable events, including Income Adjusting Events (IAEs), are recovered from Transmission Users by adjusting the Demand Transmission Residual.

- These revenue adjustments to the Demand Residual will relate to the actual costs incurred and costs saved set out in the direction from the Authority in relation to the specific unforeseen or unforeseeable event. There will be no further cost recovery from Users in relation these costs.

Modification status: Current - Workgroup Stage

Last updated: 6 September 2021