P278 – Treatment of Transmission Losses for Interconnector Users

Formal title: Treatment of Transmission Losses for Interconnector Users

Current Status

Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Awaiting Implementation


P278 proposes to always apply a fixed Transmission Loss Multiplier of 1 to Interconnector BM Units, so that the BSC does not adjust their Metered Volumes for GB transmission losses.

The Proposer argues that, because Great Britain participates in the European Inter-TSO Compensation scheme, which compensates for GB transmission losses which occur from hosting cross-border flows, Lead Parties of Interconnector BM Units should no longer be charged for GB transmission losses under the BSC.


National Grid raised P278 on 30 September 2011. The Panel agreed to issue it for a five-month Assessment Procedure by a Workgroup, during which P278 underwent an Industry Impact Assessment and the Workgroup’s Assessment Consultation. The Workgroup’s Assessment Report was presented to the Panel at its meeting on 8 March 2012, where the Panel made an initial recommendation to approve P278 and issued P278 for its Report Phase Consultation.

The Panel made its final recommendation that P278 should be approved at its meeting on 12 April 2012. P278 was approved by Ofgem on 1 May 2012, and was implemented on 29 November 2012 as part of the November 2012 BSC Systems Release.

P278 was progressed in parallel with Rejected Modification P277, which also related to Interconnectors.

Next Events

There are no further Workgroup meetings scheduled.


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