NGET is expected to be appointed to the role in August, and will be given the provision allowances for the first 20 months of operation (1 August 2014 – 31 March 2016), provided NGET meets the timetable for submitting its full EMR business plan.
Ofgem says it is set to take the “unusual” step of providing provisional allowances ahead of seeing a business plan to support the “smooth introduction of EMR”.
The role of the EMR Delivery Body, tasked with running capacity auctions and running the competitive contracts for difference allocation process, will not be formally confirmed until secondary legislation is published – likely to be 1 August 2014.
The regulator expects a detailed business plan from NGET to be provided by 12 January 2015 and it is “essential that NGET meets this deadline”.
Ofgem will then assess the business plan and adjustments will be made to the allocations if “deemed appropriate”.