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Presentation from Workstream B Pricing Modelling (EDCM/CDCM)

Common Methodology Group Workstream B. Presentation from Workstream B Pricing Modelling (EDCM/CDCM). PRESENTED BY MO SUKUMARAN, ON BEHALF OF WSB. 1. Agenda. Workstream B membership Workstream B objectives Progress to date Key issues Next steps. Workstream B membership.

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Presentation from Workstream B Pricing Modelling (EDCM/CDCM)

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  1. Common Methodology Group Workstream B Presentation from Workstream B Pricing Modelling (EDCM/CDCM) PRESENTED BY MO SUKUMARAN, ON BEHALF OF WSB energynetworks.org 1

  2. Agenda Workstream B membership Workstream B objectives Progress to date Key issues Next steps

  3. Workstream B membership All DNOs represented Open to stakeholders Suppliers attend regularly Project management and modelling support Optional representation from Ofgem Weekly meetings (telephone or face-to-face)

  4. Workstream B objectives Deliverables Proposals for CDCM approval conditions Common boundary between EDCM and CDCM EDCM model and methodology documents Timing CDCM approval conditions (except generation dominated areas) delivered 11 December 2009 Targeting 30 April 2010 for all remaining work Ofgem deadline: 1 September 2010

  5. Progress to date 11 meetings (plus joint WSA/WSB) CDCM conditions delivered IDNO tariffs, NUR, service models EDCM/CDCM boundary options WSA/WSB data interface principles Modelling requirement and commonality issues raised with Ofgem

  6. EDCM/CDCM boundary Three options Status quo: some HV sites are in EDCM Transfer all HV Sub sites to EDCM Transfer all sites supplied at HV to CDCM Major administrative and commercial impacts To be included in consultation

  7. WSA/WSB data interface Load flow models (FCP or LRIC) to produce data (£/kVA/year) at the nodal/network group level EDCM tariff model to convert these data into end tariffs Maximise FCP/LRIC commonality and consistency with CDCM model

  8. Issues raised with Ofgem Basis of charging for marginal cost charges Tariff Structure (eg Capacity, Demand or Units (Red,Amber,Green)) Sole use assets, transmission exit Propose consistency with CDCM Scaling No scaling for generation (as CDCM) Need clarification of allocation of allowed revenue between EHV and HV/LV

  9. Next steps Agree key outstanding issues with Ofgem Develop EDCM methodology and model Steer DNOs’ work to populate models Prepare consultation document (March 2010) Address CDCM generation dominated areas

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