Introduction of Locational Pricing for Transmission Losses in the GB Electricity Market

We are seeking bids from experts to perform the following services in relation to a simulation model based Cost-Benefit Analysis (CBA) of the introduction of locational pricing for transmission losses in the GB electricity market. The expert will perform the following tasks: 1.

Work with the CMA to determine a base scenario and 3 to 4 additional scenarios for the CBA analysis (possibly based on National Grid’s 4 core power scenarios) 2. Propose and implement a methodology to determine locational scenarios (all of plant, load and grid) 3.

Estimate transmission loss factors for each scenario 4. Simulate the GB electricity system to determine economic costs of generation investment and production with and without charging for losses, possibly including 3 different loss-charging methodologies: averaged (as exists currently), locational with x/y split for generators/consumers (with 2 possible x/y scenarios) 5.

Provide results of net benefits for consumers and generators, including regional breakdowns and breakdowns by generator in a final report 6. Present results to the CMA and possibly to an industry open forum 7. Prepare all inputs and outputs for dissemination to other experts through the CMA web site