CEPA Report on the Charging Treatment of the Bi-Directional Bacton IP

An independent study prepared by Cambridge Economic Policy Associates (CEPA) finds that there would be a substantial benefit for GB consumers if, following the Charging Review, National Grid were to apply the same charges to bi-directional flows across the interconnectors at Bacton as apply to GB storage.

The study by CEPA estimates that GB consumers could benefit in the region of £47m to £72m per annum if the proportion of entry bookings equalling exit bookings at the NTS Bacton IP were given the same capacity charge discount as envisaged by National Grid for GB storage under NTS charging reform proposal UNC Mod 621. The study’s finding suggest that IUK’s alternative proposal UNC 621F would further the interests of GB consumers.

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