Formal title: Introduction of a Zonal Transmission Losses scheme with Transitional Scheme
Proposed Modification P200 seeks to allocate the ‘variable’ (heating) element of transmission losses to BSC Parties on a ‘zonal’ basis through the Transmission Loss Factor (TLF). The proposed methodology for the calculation of these ‘zonal’ TLFs is consistent with that set out in the solution for Proposed Modification P198. In addition, P200 seeks to mitigate the financial impact of introducing these zonal TLFs through a transitional ‘hedging’ scheme, whilst maintaining their effect on incentives. The hedging scheme would be applied to a fixed volume of energy (the ‘F-factor’) for qualifying ‘generator’ BM Units, allowing the retention of a non-zonal share of transmission losses for that energy volume over a period of 15 years from the date of the implementation of P200. Alternative Modification P200 builds upon the same solution as for the Proposed Modification except that the zonal TLFs would vary by BSC Season; with four seasonal values, instead of one annual value.
On 17 July 2008, the Authority published an open letter (see below) stating it was no longer in a position to reach a decision on the following Modification Proposals: P198 – Introduction of a Zonal Transmission Losses scheme P200 – Introduction of a Zonal Transmission Losses scheme with Transitional Scheme P203 – Introduction of a seasonal Zonal Transmission Losses scheme P204 – Scaled Zonal Transmission Losses. These Modification Proposals are therefore closed.