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Proposed and recent Modification Proposals

Proposed and recent Modification Proposals. Simon Brooke Commercial Manager. ENW’s Interim EHV Charging Methodology. New EHV Distribution Charging Methodology from April 2011 Interim EHV Charging Methodology Modification Proposal submitted on 1 Sept. ’09 (available at www.enwltd.co.uk )

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Proposed and recent Modification Proposals

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  1. Proposed and recent Modification Proposals Simon Brooke Commercial Manager

  2. ENW’s Interim EHV Charging Methodology • New EHV Distribution Charging Methodology from April 2011 • Interim EHV Charging Methodology Modification Proposal submitted on 1 Sept. ’09 (available at www.enwltd.co.uk) • Modification proposes ‘minimum methodological change’ • Demand ‘site-specific’ methodology with calculated EHV allowed revenue; and • Generation methodology based on current DG Allowed Revenue • Excludes pre-2005 DG for interim period

  3. ENW’s Interim LDNO Charging Methodology • Interim Modification Proposal submitted in Jun ‘09 • Proposal based on Reckon net capex methodology developed in Ofgem facilitated IDNO/LNO meetings • Ofgem consulted on ENW during Jul ‘09 • ENW withdrew this modification proposal on 9 Sept ‘09 • ENW intends to submit revised modification proposal based on CDCM with: • Retrospection to April 2009 • Discount applied to all tariff components • Portfolio option available • Consistent with proposed Interim EHV LDNO charging methodology

  4. Interim EHV LDNO Charging Methodology Common Connection Charging Methodology Submit modification proposal to apply recommendation from WS4 Implement by 1 April 2010 EHV Distribution Charging Methodology Involvement in development of common FCP and common LRIC approaches Implement no later than 1 April 2011 Others

  5. A proposal for an EHV LDNO Charging Methodology Simon Brooke Commercial Manager

  6. Background • Common Distribution Charging Methodology submitted to Authority on 25 August 2009 • Submission included CDCM and LDNO (“Method M”) Models • Consultation on Code of Practice for portfolio billing on-going • New EDCM implemented by 1 April 2011 • EDCM requires discussion between parties • ENW will soon have three EHV LDNO connections, all charges calculated using approved methodology

  7. Proposal for Interim Period • Extend the Method M model to derive percentage discounts for EHV network levels • Use the MEAV split to separate costs at EHV and 132kV for 33/11kV, 33kV, 132/33kV and 132kV network levels, where applicable • Utilise the principles applied for the sharing of HV network to 33kV and 132kV networks, where applicable

  8. Illustrative percentage discounts 33kV 132kV

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