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The EDCM proposals A summary of Ofgem’s consultation

The EDCM proposals A summary of Ofgem’s consultation. Ynon Gablinger 2 June 2011. The EDCM objective.

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The EDCM proposals A summary of Ofgem’s consultation

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  1. The EDCM proposals A summary of Ofgem’s consultation Ynon Gablinger 2 June 2011

  2. The EDCM objective The objective of the EDCM is to introduce a common charging methodology across the country which is cost reflective and which accounts for key developments in the DNO networks (such as the emergence of DGs and IDNOs). Where are we in the process? • 1 April 2011: The DNOs submitted their EDCM proposal to Ofgem • 20 May 2011: Ofgem published a consultation on the EDCM proposals

  3. Consultation overview • Our consultation highlights 21 issues • core principles • issues where the DNOs have moved since their last consultation • issues where we consider that conditions may be necessary for us to approve the methodology • Issues are classified as “demand”, “generation”, “IDNO” or “common” • In addition we discuss implementation issues (ie phasing/delay) • We provide an overview of the methodology for demand, generation and IDNOs and a more high level overview in chapter 2

  4. EDCM consultation issues

  5. EDCM consultation issues

  6. EDCM consultation issues

  7. EDCM consultation issues

  8. Volatility We are considering placing a requirement on DNOs to deliver a package of measures to help customers deal with uncertainty around EDCM charges. Measures would aim to • mitigate inherent year on year volatility • provide optional access to a “long term product” Separately, we are considering a new requirement on DNOs to provide assistance to companies most affected by the step change in tariffs We invite stakeholders’ views

  9. EDCM Implementation

  10. Next steps

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