Revenue Regulation
To set such charges, the CER first determines the revenues that the transmission business can earn to cover the costs of both the Transmission System Operator (TSO) and the Transmission Asset Owner (TAO). Revenue reviews are carried out each five years, and are then refined annually. The latest five year review covers the period 2006 to 2010 and sets out the total allowed revenues over that period.
Please follow the link to the CER's Decision Paper on Transmission Allowed Revenues for the period 2006 - 2010.
Regulated Tariffs
Each year the allowed revenue is refined in an annual review that updates a range of assumptions. This determines the allowed revenue in that relevant year which is then used to calculate tariffs and charges to users of the transmission system.
The transmission tariffs that are approved by the CER each year include transmission use of System (TuoS) charges to generators and to customers.
Charges to generators connected to the system are based on the generator’s capacity and are site specific, differing according to the location of the generator. Most customers use the transmission system to some degree although only very large customers are directly connected to the transmission system. The majority of end customers are connected to the distribution system. Customer TuoS charges are based on a mixture of capacity and energy use, with the tariffs depending on whether they are connected to the transmission system or the distribution system. For the majority of customers, the charge is further divided into two tariff categories depending on consumption.
Please follow the link to All of CER's Decisions on Transmission Revenue and Transmission Tariffs.