Sheringham Shoal OFTO misses out on £85k costs payment due to email error

Blue Transmission Sheringham Shoal , the company that owns and operates the link connecting the Sheringham Shoal offshore wind farm to the GB network, has missed out on a £85,420.08 contingent event adjustment (CEA), after its email to Ofgem failed to arrive as the attachment was too big.

OFTO companies can claim revenue adjustments to be made due to costs related to specific events listed in their licence. The OFTO must make the claim “not later than three months after the end of the relevant year in which it [the event] occurs”, which would have been by 30 June 2016 in this instance.

Min Zhu, associate partner for networks at Ofgem, told Blue Transmission Sheringham Shoal that its application for a revenue adjustment had failed in a letter, explaining: “On 8 December 2016, you sought an update on the progress of the CEA. We notified you that no Notice had been received. You then forwarded an email addressed to the Authority dated 23 June 2016 with the Notice attached. You stated that you had not received any indication that your email of 23 June had not been received. You noted that you did receive notification, on 8 December 2016, that the first attempt to forward the email had failed, due to the size of the file.”

It’s not the first time an OFTO has missed out on a revenue adjustment due to a clerical error. Last month, Gwynt y Mor OFTO heard it had failed to convince regulator Ofgem that it should get revenue payments for a period while the link was out of action. The regulator said: “As you have failed to notify us within 14 days of the occurrence of the Planned Outages, the Planned Outages do not qualify for a revenue adjustment.”

Looks like the OFTOs may have to sharpen up on paperwork all around…

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