SEM-10-082 SEMO Price Revenue and Tariffs Decision Paper v16

The SEM Committee today (10th December) publishes its decision on the revenue that SEMO should be allowed to recover via the Market Operator’s Charges over the period October 2010 - September 2013, to cover their costs as Wholesale Electricity Market Operator.

This Decision Paper by the SEM Committee includes decisions on the form of SEMO regulation and the allowed revenue for SEMO’s OPEX. SEMO has been given a choice of several different CAPEX allowances with specific incentive schemes attached to each choice. The final set of tariffs derived from the SEM Committee approved allowances for OPEX and the SEMO’s choice for CAPEX shall be published by SEMO by late December or early January. The tariffs for the current year (which were already published by SEMO on 24 September) will not be immediately affected by this decision paper. The eventual difference between the allowed revenue for 2010-2011 and the tariff recovered by SEMO within this period will be adjusted via the k factor at the year end.

In addition the SEM Committee are publishing all market participants’ responses to the consultation paper on SEMO Price Control published by the Regulatory Authorities in August 2010.