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Detail of outcome
On Monday 16 July 2012, the Government published its response to the consultation on the Transmission Constraint Licence Condition (TCLC).
This consultation invited comments on the proposal to modify the standard conditions of electricity generation licences to prevent behaviour by generators that can significantly increase the costs of balancing the electricity system during periods of transmission constraint.
The response document sets out the Government’s final decisions, noting our view that the TCLC should be implemented in order to reduce unnecessary and significant constraint costs to consumers over the medium term until upgrades to the transmission system can take effect. We estimate that it could save consumers between £115m-£300m over 5 years.
Subject to the parliamentary process required by the Energy Act 2010, the new licence condition will come into force on 29 October 2012. It will expire after 5 years, with the potential to extend it by two years (following review).
Enforcement of this measure will be overseen by Ofgem, the independent energy regulator.
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- Government response to the consultation on the Transmission Constraint Licence Condition
- Impact Assessment: Government response to the consultation on the Transmission Constraint Licence Condition
- Regulatory Policy Committee opinion on the Impact Assessment