CMP305: Removal of the Enhanced Reactive Power Service (ERPS)
What is being proposed
Remove references to the Enhanced Reactive Power Service (ERPS) from the CUSC. ERPS is an opt-in tendered commercial service for which no tenders have been submitted in seven and a half years, and no contracts have been agreed in nine years.
Current status
The Panel met on 31 August 2018 and agreed that it goes straight to Code Administrator Consultation. Final Modification Report was sent to Ofgem on 12 December 2018 for decision; however Ofgem sent back CMP305 on 1 February 2019 asking that the revised Final Modification Report should include information on the stated administrative impacts of the current tendering requirements for the Enhanced Reactive Power Service. As CMP304 and CMP305 are two different options related to treatment of the same service, Ofgem feel it would be appropriate that they assess and make their decisions on these related proposals at the same time and therefore asked that CMP305 is resubmitted to Ofgem alongside CMP304.
Details
Timeline
Analysis
NESO proposes removing the Enhanced Reactive Power Service (ERPS) from the CUSC, a tendered commercial service that has attracted no bids in 7.5 years and no contracts in 9 years. Ofgem has delayed decision pending alignment with related proposal CMP304. The removal affects balancing service providers but has low industry impact.
Why it matters
This removes administrative overhead for a service that has failed to attract any market participation, indicating the existing reactive power arrangements already provide adequate incentives. The delay suggests Ofgem is treating this as part of broader reactive power market reforms rather than simple housekeeping.
Key facts
- •No tenders submitted for ERPS in 7.5 years
- •No contracts agreed in 9 years
- •Ofgem delayed decision in February 2019 to align with CMP304
- •Service is opt-in and tendered commercially