September 1999 - Distribution loss factor clause 3.6.3(c)

On 15 September 1999 a dispute resolution panel chaired by John Clarke QC issued a determination relating to the appropriate loss factor under clause 3.6.3(e) of the code. A summary of the panel’s decision, slightly amended in order not to name the parties involved in the dispute, is available to download.

The panel recommended, amongst other things, that NEMMCO should not make any new determination of a loss factor in relation to the generator than was the subject of the dispute until the wider issues of the financial impact of distribution loss factors have been considered by NECA as part of its current review of the scope for integrating the energy market and network services.

Commenting on the panel’s decision, Stephen Kelly, NECA’s managing director, said that:

"I welcome the panel’s recognition of the need to resolve the wider issues surrounding distribution loss factors. It is essential to ensure there are no barriers to entry, or unfairly discriminatory access to the market, for new entrants. We shall ensure that this issue is addressed four-square within the review we have launched of the scope for integrating the energy market and network services. The appropriate basis for determining distribution loss factors will be discussed, and comments invited, in the issues paper we shall shortly be publishing as the basis for consultation on the review."