On 20th February the SEM Committee published a consultation paper on the treatment of the opportunity costs of carbon in the Bidding Code of Practice.
The Regulatory Authorities expressed their concern in AIP-SEM-07-430 about the implications for end-customer tariffs of requiring generators to bid the full opportunity cost of carbon; and the fact that this requirement would result in substantial windfall gains for generators at the expense of end-customers. The Regulatory Authorities were minded at the time to allow greater flexibility in the bidding of carbon costs to give generators the ability to compete away some or all of the benefits of the allocation of free carbon allowances; and committed to consulting on the issue in due course.
This Consultation Paper fulfil that committment. Comments on the paper should be sent to, preferably by email, to Tadhg O'Briain (tadhg.obriain@niaur.gov.uk) and Stephen Powell (Spowell@cer.ie) by 17:00 on Friday 14th March 2008.