Decision to defer making change to allocation of instantaneous reserve availability costs
We have decided to defer our decision about amending the Code to alter the way instantaneous reserve availability costs are allocated. Issues raised by submitters lead us to reconsider whether the proposal to allocate instantaneous reserve availability costs on a national basis was clearly more efficient than the existing island-based method of allocation.
Following our reconsideration, we are no longer confident the proposal is more efficient than the status quo. The implementation of a national market for instantaneous reserve will go ahead as planned because it does not appear imperative we amend the allocation before we do so.
Accordingly, we have deferred making a decision on the proposed Code amendment in the short term. Until we have identified a more efficient alternative, availability costs will continue to be allocated as they are now. We will consider more efficient options for allocating IR availability costs under the existing project to review the instantaneous reserve event charge and cost allocation, currently being undertaken by the Wholesale Advisory Group.
Last updated: 9th August 2016