Transmission Entry Capacity (TEC) Trading

CUSC amendment proposal CAP068 (Competing Requests for Tec) was approved by the Authority and introduced into CUSC with effect from 1st April 2005. This facilitates new arrangements whereby generators are able to trade Transmission Entry Capacity (TEC) rights on a permanent basis, subject to an exchange rate set by National Grid.

Transmission Entry Capacity (TEC) is a CUSC term that defines a generator's maximum allowed export capacity onto the transmission system. Under the CUSC, parties with TEC rights have the option of purchasing the same or less quantity of TEC in the following year.

If a generator is seeking additional TEC or a new generator is seeking an initial allocation of TEC this may be done by completing an application and sending it to National Grid. National Grid has a licence obligation to offer terms to all parties seeking access to its transmission system. If National Grid considers that the additional generator capacity would require network reinforcement for its system to continue to comply with its security standards then National Grid would typically provide a connection offer on an invest-then-connect basis.

Under the new arrangements there is now an alternative. If there is a willing seller of TEC, parties may wish to negotiate bilaterally for the purchase of TEC. National Grid is unable to put people in contact directly but the TEC Register documents at the bottom of the page state the current TEC of relevant CUSC parties.

An exchange rate request should take the form of a joint request from an Applicant and another User or Applicant to calculate the Exchange Rate that would apply were they to agree a TEC Trade. The appropriate application forms can be found on this CUSC website.

Upon receipt of an application from both parties of the TEC rights (including the application fee as detailed in the Statement Of Use Of System Charges), National Grid would calculate the appropriate Exchange Rate within the same Grid Supply Point (GSP) or between differing GSPs (as appropriate) within three months from the valid application being received by National Grid. The Exchange Rate identified by National Grid will be used in the calculation of Transmission Entry Capacity available to a specific party as a direct result of a specific reduction in the Transmission Entry Capacity available to another party.

Any offer made by National Grid would be valid for three months and if accepted by both parties would become effective from the following 1st April. Upon acceptance of an offer by both parties, National Grid will publish the details of any TEC Trade on this CUSC website. Details of the latest TEC Trades can be found by clicking on the TEC Trades Template document at the bottom of the page.

We would like to draw your attention to the ‘Terms & Conditions’ at the bottom right hand corner of this page.