Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.

Publish Date : 10-Jun-2016

Ofgem is consulting on National Grids request to recover the costs of two contracts for grid services that it agreed with SSE (for the Fiddlers Ferry power station) and Drax following a tender process. The contracts are worth 113 million in total.

These services refer to the ability of certain generators to start up and provide electricity to the transmission system without an external power supply (commonly referred to as Black Start). This is an insurance policy for the unlikely event that National Grid needs to re-energise the transmission system.

Traditionally coal plant has provided Britain with this capability, but the economics of running these plant have changed. This means they are available less frequently than before.

Ofgem set National Grid a cost target for these services. National Grid has spent significantly more money than the agreed target. National Grid has applied to Ofgem to recover all of these costs from generators and suppliers through the Income Adjusting Events process.

When making a decision on this Ofgem has powers to disallow some or all of the expenditure on these contracts if it judges that the case for recovering the money has not been met.

Go to previous page