DCMF

WSB Update

EDCM Consultation

Mo Sukumaran – WSB Chair

15 February 20111 | Energy Networks Association

EDCM Consultation

EDCM Consultation workshop: • Held 13th January at ELEXON.• 65 attendees.

EDCM Consultation:• Issued 21st December 2010• Updated appendices issued:

• 23rd Dec & • 11th January

• Consultation closed 1st February 2011.

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Consultation responses

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Responses received from 28 stakeholders:• 3 DNOs• 2 IDNOs• 6 Suppliers• 6 Generators• 7 Customers• 4 Other organisations

Comprising:• 23 general response papers• 184 answers to the 15 questions in the consultation

15 February 2011

Key Comments

• Stakeholders recognise the progress and work by DNOs since June 2010

• Concerns:– Cost-reflectivity

– Inclusion of 2 different methodologies (LRIC, FCP)

– Demand scaling method and high percentage of total costs

– Justification of charges

– Fairly even split between voltage level and site specific options

– Need for capping seen as a failure of the methodology (although customers were in favour of capping!)

15 February 2011

Key Comments (continued)

• Concerns continued:– Scaling of generation charges

– Distinction between:

• intermittent/non-intermittent generation and

• on-shore/off-shore generation

– Volatility and predictability of charges

– Pre-2005 generation compensation unknown

• Awaiting Ofgem decision

– Failure to address issues raised to June consultation

– Specific illustrative charges – some are significantly higher

15 February 2011

A stakeholder comment

“In conclusion; this evolution is much better than that rightly delayed last summer.

It remains, however, an inelegant solution to a question that many EHV users would have been happy not to ask”!

15 February 2011

Next Steps

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• Review the responses and reflect as appropriate in EDCM

• Publish a Summary of Consultation responses on ENA

website

15 February 2011