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CMG and Workstream Update

CMG and Workstream Update. PRESENTED BY Andrew Neves, Chair CMG. energynetworks.org. 1. EDCM Overview. Two workstreams (WSA & WSB) set up to deliver EDCM charging methodologies as outlined in Ofgem’s July 2009 decision document (ref: 90/09) Open to all stakeholders

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CMG and Workstream Update

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  1. CMG and Workstream Update PRESENTED BY Andrew Neves, Chair CMG energynetworks.org 1

  2. EDCM Overview Two workstreams (WSA & WSB) set up to deliver EDCM charging methodologies as outlined in Ofgem’s July 2009 decision document (ref: 90/09) Open to all stakeholders Current representation from all DNOs, suppliers, IDNOs (where relevant) and Ofgem Submission deadline -1 September 2010 3 June 2010 energynetworks.org 2

  3. WSA Update Progress so far: ‘Working Draft’ LRIC / FCP Methodology Statements and Implementation and Guidance Notes were produced in March: documenting the common understanding, of the individual EDCM methodologies outlined in Ofgem July 2009 decision document (ref: 90/09) sent to Ofgem for review published on the ENA’s Structure of Charges website 3 June 2010 energynetworks.org 3

  4. WSA Update (cont.) Ofgem subsequently indicated that further development is required to address its concerns on some aspects of the LRIC and FCP methodologies In response, WSA has developed a number of improvements to the EDCM methodologies for inclusion in the forthcoming consultation 3 June 2010 energynetworks.org 3

  5. WSA Update (cont.) LRIC Improvements Revised modelling of generation in the minimum demand scenario ‘Sense checking’ of powerflows derived from application of security factors FCP Improvements Revised generation analysis – increases the number of locations that a Test Size Generator is applied (increasing the extent of network ‘tested’) ‘Sense checking’ of TSG sizes 3 June 2010 energynetworks.org 5

  6. WSB Update Progress so far Recent consultation on EDCM/CDCM boundary received 10 responses (including all DNOs), which have now been summarised Response to CDCM condition on generation-dominated areas being developed Draft EDCM models based on current proposals provided to Ofgem for feedback and further development 3 June 2010 energynetworks.org 6

  7. WSB Update (cont.) Current proposals for tariff elements: 1. Demand (import tariffs) Charge 1 from FCP/LRIC (p/kVA/day) Transmission exit (p/kVA/day) Sole user asset charge (p/day) Scaling (p/kVA/day) (might be negative) 3 June 2010 energynetworks.org 7

  8. WSB Update (cont.) 2. Generation (export tariffs) Charge 1 from FCP/LRIC (p/kWh) credit for non-intermittent generation Charge 2 from FCP/LRIC (p/kVA/day) Transmission exit (p/kVA/day) charge or credit 3 June 2010 energynetworks.org 8

  9. WSB Update (cont.) 3. Network interconnections LDNOs: portfolio with CDCM-like and EDCM-like parts Offshore: portfolio ? DNO-to-DNO: treat as demand? 3 June 2010 energynetworks.org 9

  10. Next steps Agree key outstanding issues and seekpositive opinion from Ofgem for consultation paper Revised WSA documentation to be produced to accompany the consultation Continued development of LRIC/FCP as issues identified through implementation/ consultation phase DNOs populate EDCM pricing model to produce illustrative tariffs for consultation paper Issue EDCM consultation on 18 June 2010 Complete work on CDCM generation-dominated areas 3 June 2010 energynetworks.org 10

  11. Revised EDCM timeline 3 June 2010 energynetworks.org 11

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