The Generator Transmission Use of System (GTUoS) Tariff is a tariff which charges generators for use and access to the transmission system. The tariff is updated annually and seeks to recover 25% of the respective jurisdictions’ transmission network costs per the methodology captured in the All-Island TUoS Methodology Statement (SEM-11-079).
In a European context, Commission Regulation (EU) No 838/2010 (“the Regulation”), introduced a “common regulatory approach to transmission charging”, requiring that “annual average transmission charges paid by producers in each Member State shall be within the ranges” set out in point 3 of part B of the Regulation. The annual average transmission charges paid by producers is the annual total transmission charges paid by producers divided by the total measured energy injected annually by producers to the transmission system of a Member State. For Ireland, the range prescribed in the Regulation is €0 to €2.5/MWh. For the avoidance of doubt, the Regulation does not allow for this range to be indexed for inflation.
Whereas All-Island GTUoS is charged based on generators’ capacity, since the range prescribed in the Regulation is assessed on the overall charges recovered from producers divided by the total measured energy injected annually by producers, compliance with this cap can only be confirmed ex-post. This annual average transmission charge has been trending upwards over time and it has been identified that in calendar year 2023, the annual average transmission charges paid by producers exceeded the cap of €2.5/MWh in Ireland. Due to the upward trend in network costs, it is also expected that this cap will be exceeded in calendar year 2024 as well but this will only be identifiable ex-post.
To ensure alignment with the Regulation in this jurisdiction, the overall quantum of network charges recovered from generators in 2023 (and any subsequent year in which this may arise) needs to be adjusted to bring the annual average transmission charge back within the prescribed range. The process by which this reconciliation will take place is within the scope of this consultation.
Responses to this consultation will inform the decision making of the CRU only regarding the proposals herein. EirGrid will continue to engage with the CRU regarding the scope of costs recovered through GTUoS in this jurisdiction.
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Questions
Q1. Do participants agree with the proposal for the EU 838/2010 regulation refund to be calculated and carried out on a Tariff Year basis?
Q2. Do participants agree with the proposal for how the EU 838/2010 regulation refund will be calculated in any year where the cap in the Regulation has been exceeded?
Q3. Are there any comments in relation to the proposal of how the revenue will be sourced and paid out to generators to maintain compliance with EU 838/2010
EU Regulation 838/2010: Methodology for Alignment in Ireland
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The Generator Transmission Use of System (GTUoS) Tariff is a tariff which charges generators for use and access to the transmission system. The tariff is updated annually and seeks to recover 25% of the respective jurisdictions’ transmission network costs per the methodology captured in the All-Island TUoS Methodology Statement (SEM-11-079).
In a European context, Commission Regulation (EU) No 838/2010 (“the Regulation”), introduced a “common regulatory approach to transmission charging”, requiring that “annual average transmission charges paid by producers in each Member State shall be within the ranges” set out in point 3 of part B of the Regulation. The annual average transmission charges paid by producers is the annual total transmission charges paid by producers divided by the total measured energy injected annually by producers to the transmission system of a Member State. For Ireland, the range prescribed in the Regulation is €0 to €2.5/MWh. For the avoidance of doubt, the Regulation does not allow for this range to be indexed for inflation.
Whereas All-Island GTUoS is charged based on generators’ capacity, since the range prescribed in the Regulation is assessed on the overall charges recovered from producers divided by the total measured energy injected annually by producers, compliance with this cap can only be confirmed ex-post. This annual average transmission charge has been trending upwards over time and it has been identified that in calendar year 2023, the annual average transmission charges paid by producers exceeded the cap of €2.5/MWh in Ireland. Due to the upward trend in network costs, it is also expected that this cap will be exceeded in calendar year 2024 as well but this will only be identifiable ex-post.
To ensure alignment with the Regulation in this jurisdiction, the overall quantum of network charges recovered from generators in 2023 (and any subsequent year in which this may arise) needs to be adjusted to bring the annual average transmission charge back within the prescribed range. The process by which this reconciliation will take place is within the scope of this consultation.
Responses to this consultation will inform the decision making of the CRU only regarding the proposals herein. EirGrid will continue to engage with the CRU regarding the scope of costs recovered through GTUoS in this jurisdiction.
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