(4.3) Location Dependence

A further issue to be considered in use of system charging is whether any account should be taken of the location of users. Given that the costs of constructing and operating the network vary with the distance of users from sources of energy, in principle it is economically efficient to charge network users according to their location.

However, GE does not believe that location dependant Use of System charging is appropriate for the Island of Guernsey for the following reasons:

• GE estimates that less than 15% of the conveyance costs (to be recovered via UoS) could be allocated to each of the individual conveyance network sectors;
• Only a limited amount of location specific expenditure data is routinely captured within GE's financial information system, therefore recording and subsequent charging by sector would increase billing complexity, leading to significant additional operational costs for GE; and
• It would be socially divisive for GE since users with only modest demands located in outlying parts of the network such as Torteval could find themselves being required to meet much larger costs than those favourably located major users for instance in the Vale.

Back to Statement of Connection (Conveyance System Connections)