TRANSMISSION ACCESS - INTERCONNECTORS
Addressing TR’s Five Questions
Implications of TA Vision
Consideration of European Developments
What Interconnectors would want from any Access Regime
– Not without issue, but in general
• Treated as a generator and demand and charged the same as
any other connectee
• Capacity rights are for max capability and for duration of project
• Rights are contracted through CUSC and bilaterals between
Interconnector Owner and NGC and are considered firm
• Connection and TNUoS charges made to IOs and recharged to
• BSUoS charges made to IUs directly
• Have also been reasonably and successfully adapted under
different contract structures since 1990
Addressing TR’s 5 Questions
under Current Arrangements
• Rights are allocated to IO once security established, firm for
duration of project although no absolute surety of price
• IOs could trade those rights in theory and can contract on
• Breaching contract terms could ultimately require disconnection
and termination charges as appropriate
• Initially the IO is the contracted party with NGC and has the
prime contractual responsibility
• NGC’s transmission investment driven by needs of the customer
building the interconnection and the need to meet the planning
standards. No different from other users and prospective users.
• Sufficient information currently available - CUSC processes
Charge out rules, transparent tendering, 7yr Statement
Implications/Questions of TA Vision
• Access rights will only be allocated for several years. Then? Auctions?
• IOs obtain access rights? One-way or two-way rights?
• IUs contract/auction for I/C and Trans. Capacity? Are they separable?
• Who and how do you invest in new interconnections?
• Possible incorporation of Interconnection assets into Transmission?
Inter-system trades done at mid-point?
• Existing contracts for use of the Interconnections? Some have 2 yrs to
run, some have 30yrs. Explicit duration and rights. Compensation?
• Should there be different rules for interconnections from rest of system
or between existing and future ones?
• Is the SO always going to be wanting to buy back the rights in the
direction most likely to aggravate a transmission constraint? Or, will it
always wait until short term when trades have been agreed? Will this
be in the energy market or the access market?
Consideration of European
• Interconnections allow Cross Border trading, but are regarded
as psuedo-generators at the border
• CBT debate likely to lead to fixed or zero charge for use of
transmission for cross border trades, therefore
• Replacing Connection and TNUoS and/or any TA regime?
• System to System trading? When? Who? Rights to use?
• Use of interconnectors in Europe considered firm except when
potential loss of demand results.
• Increasing interest in ICRP model in Europe
• Is Interconnection ownership an issue? Conflicts of interest?
• Any present or future interconnection transfer could flow
disadvantageously wrt the Transmission System.
• Interconnection transfers can reverse and if seen to be a long
term possibility then the system could be reinforced accordingly.
The judgement will be one of constraints costs versus
• Hence it is important to consider this at the investment planning
stage; this will impact on system reinforcement requirements or
in level of charges.
• Ability should be retained to allow transfers to be curtailed to
prevent (or in the event of) demand disconnection.
What Interconnectors Want From Any
• Entry and Exit Access rights to each system agreed to IO for the
life of the Interconnection, min 25yrs and possibly 40yrs.
• Proper recognition of Two-Way flow and Superposition.
• Ability to act as a Trading Unit and a party acting as aggregator.
• Equitable treatment of Interconnectors within the overall
charging regime, reflective of their impact on the system.
• Trading opportunities for IUs in all timescales are maximised,
not frustrated, especially if charges are the same as other users.
• Interconnection investment opportunities can be realised.
• The ability and option to have firm and non-firm access rights.
• The auctioning of Interconnection Capability automatically gives
rights of access to the Transmission System.
• Only pass-thru costs are BSUoS and CBT. Other costs are IO’s.
• Equitable treatment with rest of Europe.