CMP288: Explicit charging arrangements for customer delays and backfeeds
What is being proposed
To introduce explicit charging arrangements to recover additional costs incurred by Transmission Owners and TNUoS liable parties as a result of transmission works undertaken early due to a User initiated delay to the Completion Date of the works, or to facilitate a backfeed.
Current status
The Panel met on 23 February 2018 and agreed that it goes to a Workgroup. Workgroup meetings commenced on 16 May 2018.June 2022 Panel agreed that the Workgroup had met its Terms of Reference. Code Administrator Consultation was issued on 27 June 2022 and closed 5pm on 18 July 2022 with 6 non-confidential responses received. Draft Final Modification Report was presented to July 2022 Panel for their recommendation vote and Panel by majority recommended that CMP288 should not be implemented. Send back was 14 September 2023. The December 2023 CUSC Panel approved an updated timeline and Terms of Reference. An updated timeline was approved by the February 2024 CUSC Panel. Ahead of the CUSC Panel approving the reconvening of Workgroup meetings, the Workgroup Consultation Document will be finalised and circulated for Workgroup approval ahead of being published to industry. October 2024 CUSC Panel prioritised as Low, therefore no work will take place on this modification until further notice.The Panel will be reviewing the status of this modification in the January 2025 Panel. Upon receipt of the Authority Open Letter on 31 Jauary: Outlining their approach to prioritisation of electricity transmission network charging modifications, Panel will review the modification status in the February Panel. (18/02/2025) On 14 February 2025 at the Special CUSC Panel the Panel discussed, at length and in detail, the prioritisation of CUSC Modifications. The CUSC Panel agreed this modification remained low priority.
Details
Timeline
Analysis
CMP288 proposes explicit charging arrangements to recover additional transmission costs when users delay grid connection works or require backfeed arrangements. The modification has been low priority since October 2024, with Panel confirming this status in February 2025. The proposal targets cost recovery from developers who cause transmission owners to undertake works early due to user-initiated delays.
Why it matters
This represents a shift from socialised to user-specific cost allocation for delay-induced transmission works, following Coase theorem principles. However, the low priority status suggests insufficient industry support or materiality, as such the reform remains stalled despite addressing a legitimate cost causation issue.
Key facts
- •Panel recommended against implementation in July 2022
- •Classified as low priority October 2024
- •Status confirmed unchanged February 2025
- •High impact on transmission owners and connecting developers