Primary: Distribution loss
factor Clause 3.6.3 (c)
On 15 September 1999, a dispute resolution panel chaired by John
Clarke QC issued a determination relating to the determination of the
appropriate loss factor under clause 3.6.3(e) of the Code. A summary of
the panel’s decision, slightly amended in order not to name the parties
involved in the dispute, is available to download.
The panel recommended, amongst other things, that NEMMCO should not
make any new determination of a loss factor in relation to the generator
than was the subject of the dispute until the wider issues of the
financial impact of distribution loss factors have been considered by
NECA as part of its current review of the scope for integrating the
energy market and network services.
Commenting on the panel’s decision, Stephen Kelly, NECA’s managing
director, said that:
"I welcome the panel’s recognition of the need to resolve the wider
issues surrounding distribution loss factors. It is essential to ensure
there are no barriers to entry, or unfairly discriminatory access to
the market, for new entrants. We shall ensure that this issue is
addressed four-square within the review we have launched of the scope
for integrating the energy market and network services. The appropriate
basis for determining distribution loss factors will be discussed, and
comments invited, in the issues paper we shall shortly be publishing as
the basis for consultation on the review."