Industry members have until 17 March to put forward new nominations for the Connections and Use of System Code (CUSC) panel, the body that oversees changes to the way companies interact with – and are charged for using – the electricity transmission network.
Two recent Code modifications were used to change the way some transmission costs are allocated, a change that has dramatically cut payments to so-called ‘embedded’ generating plants (ie those connected to the distribution network).
The Code Panel comprises companies who are members of the CUSC, and so it is heavily weighted towards companies with large transmission-connected generation. The Panel also includes a supplier representative, as well as representatives from onshore transmission and offshore transmission owners.
The CUSC panel requirements are set out here: Section 8 – Modifications v1.26.
The CUSC process needs to be modified to become more representative of the industry as a whole. This governance process was initially designed to deal with incremental changes that could be implemented at a year’s notice. However, the it is not appropriate for making step changes as radical as the cut to so-called ‘embedded benefits’.
Industry governance must be developed so that it is fit for purpose and able to facilitate the more radical changes to charging we must expect in the future.