Imperfections Charge 2019/20 and Incentive Outturn 2017/18

01 July 2019

The Regulatory Authorities, in Northern Ireland and the Republic of Ireland, today publish the Imperfections Charge Consultation paper. SONI and Eirgrid, together the Transmission System Operators (TSOs) for the all island Single Electricity Market (SEM), control the transmission of electricity and the management of various network constraints. These network constraints create additional costs within the SEM, as the TSOs are required to allow for such constraints in real time and increase or decrease individual generator’s output of electricity to ensure the balance between supply and demand of electricity is maintained at all times. Constraint costs are recovered through the Imperfections Charge and this Consultation paper provides an estimate of Imperfection Costs for the 2019/20 tariff year. The TSOs are incentivised to manage constraint costs through the introduction of new initiatives and this Consultation paper also describes the TSOs’ entitlement to an incentive payment for their management of Imperfection Costs in the 2017/18 tariff year.