SEM-18-047 Imperfections Charge 2018-19 and Incentive Outturn 2016-17 Decision Paper

Imperfections Charge 2018/19 and Incentive Outturn 2016/2017 decision paper

The Regulatory Authorities, in Northern Ireland and the Republic of Ireland, today publish the Imperfections Charge and Incentive Outturn Decision 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 Decision paper details the Imperfections tariff to be applied in the 2018/19 tariff year. The TSOs are incentivised to manage constraint costs through the introduction of new initiatives and this Decision paper also describes the TSOs’ entitlement to an incentive payment for their management of Imperfection Costs in the 2016/17 tariff year.  Responses to the Consultation paper (SEM-18-038) are attached as appendices and have been duly considered when making the decisions contained within this paper.

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