P145 – Cost reflective mechanism to allocate any deficit arising from the application of the PNE claims fee

Formal title: Cost reflective mechanism to allocate any deficit arising from the application of the PNE claims fee

Summary

Elexon have recently published indicative figures outlining the cost of the PNE claims process, as part of a Past Notification Error (PNE) claim fee consultation. It now appears highly likely that there will be a significant discrepancy between the administration fee revenue and the cost of the PNE claims process. With a fee remaining at £5,000 the most likely outcome is a £1.4M deficit. The PNE claims process was established for the benefit of parties seeking to rectify their past notification errors, and thus the cost of that process should be borne by such parties. Furthermore the PNE claims process costs should be fairly allocated amongst claimants according to the degree to which they contribute to these costs.