A group of eight companies, including flexible generation firm Peak Gen, have been granted their request for a judicial review of Ofgem’s decision to cut triad avoidance payments. The appeal was lodged in October after the regulator confirmed its intention to reduce the residual portion of the payments to a fraction of their current value. “PeakGen Top Co, along with seven other companies which own or have interests in power generation, has been granted permission for a judicial review in respect of Ofgem’s decision on embedded benefits,” the firm said in a statement. “This means the case will now be heard in court on a date to be set. In light of the on-going legal action it would not be appropriate to comment further at this time.” Small-scale generators embedded within distribution networks can receive triad avoidance payments by helping suppliers to reduce their Transmission Network Use of System (TNUoS) charges. They are able to do this as they are effectively treated as negative demand during the triad periods of peak demand used to set the charges. The payments form one of the financial advantages known as embedded benefits that are available to small-scale distributed generators.
Utility Week 20th Nov 2017 read more »