CP1189 – Change to allow SVA Line Loss Factors less than one

Formal title: Change to allow SVA Line Loss Factors less than one

Summary

The present situation does not allow an accurate representation of the effect users have on network losses.   The proposed change would allow a more correct treatment of how additional generation, in particular, would affect network losses and would offer a fairer and more transparent allocation of losses to all users.   This aligns with the Applicable BSC Objectives (Condition C3 (3) of the Transmission Licence), particularly Objective c) “promoting effective competition in the generation and supply of electricity, and (so far as consistent therewith) promoting such competition in the sale and purchase of electricity”.   At present, such competition is being adversely affected by an inability to accurately allocate losses to users.   The proposed amendment would promote effective competition through the accurate interpretation of factors that drive costs; in this case network losses.