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ARTICLE · 18 JULY 2024

Updated Transmission Constraint Licence Condition Guidance

Gowling WLG
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Last month, Ofgem updated its Transmission Constraint Licence Condition (TCLC) guidance, crucial for licensed generators and third-party balancing mechanism bidders. Key updates emphasize greater compliance details, clarify responsibilities, remind about REMIT's broader prohibitions, and provide new examples for cost assessment. The guidance reinforces the need for generators to anticipate transmission constraints and ensure bids are cost-reflective, even under high costs or uncertainty. Failure

United KingdomEnergy and Natural Resources
Gus Wood
Gus Wood
George Nixon
George Nixon
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Last month, Ofgem updated its Transmission Constraint Licence Condition guidance. In this article, we will cover the key updates whichlicenced generators (including battery storage asset owners) and third parties submitting balancing mechanism bids on behalf of licenced generators (including battery optimisers) should now consider.

The Transmission Constraint Licence Condition

Constraints occur when the electricity transmission system is unable to transmit power from the location of its generation to the location of electricity demand, due to congestion at one or more parts of the transmission network. The electricity system operator (ESO) is tasked with balancing the electricity system and with managing constraints.

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