Imperfections Charge 2022/23 Consultation Paper

15 July 2022

Imperfections Charge 2022/23 Consultation Paper

Today, 15th July 2022, the Regulatory Authorities (the RAs, i.e. UR & CRU) are consulting on the Transmission System Operators (i.e. EirGrid & SONI) ‘Imperfections Revenue Requirement’ submission for Tariff Year 2022/23, prior to issuing its final decision on the 2022/23 Imperfections Charge.

The purpose of the Imperfections Charge is for the Transmission System Operators (TSOs) to recover the total expected costs associated with constraints in the transmission system. SEMO levies the Imperfections Charge on suppliers.

The RAs invite stakeholders’ feedback on the following:

  1. Whether the TSOs’ forecasts of costs and assumptions for Tariff Year 2022/23 are reasonable
  2. If there are actions the TSOs could take to minimise Imperfections Charges
  3. If the Imperfections Price for Tariff Year 2022/23 should be determined based on forecasts using either daily projected quarterly fuel and carbon costs averaged over a 12-month period, or utilising the K-factor run rate approach
  4. Whether the K-factor for under or over-recovery from previous Tariff Years should be spread over more than one subsequent Tariff Year and, if so, over how many Tariff Years
  5. The merits of implementing a biannual review of the costs covered by Imperfection Charges and a proposed modification to the Trading and Settlement Code to allow bidirectional alterations to the Imperfection Charge Factor

Consultation closes on 5th August 2022.

Link to Annex 1: Imperfections Revenue requirement

Link to Annex 2:  Imperfections K-Factor Submission report

Link to Annex 3: Imperfections Reforecast Report