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This snapshot, taken on 07/08/2007, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.
A new transmission charging methodology was introduced on 1 April 2005 with the introduction of BETTA. These charges reflect the costs that generators and suppliers impose on the transmission system and generators that are further from the centres of demand (i.e. where the population is dense) pay higher transmission charges. Because of the cost reflective nature of the charging, generators located in Scotland will pay higher charges than those located in England and Wales.
The rationale behind the cost reflective methodology for transmission charging is to ensure that the transmission system is developed efficiently and cost effectively and to provide for an incentive for new generation to locate where there is the most demand. As a result, this will lead to minimise the costs that will ultimately be borne by electricity consumers.
National Grid is responsible for developing the methodology for transmission charging and it is for Ofgem to approve it. DTI has no formal role in the process. The new transmission charging methodology that was introduced on 1 April 2005, will be revised in 2008 (3 years after introduction).
Further information about the transmission charging methodology is available on National Grid's website (see 'External Links').