energynetworks.org 1 presented by andrew neves, chair cmg cmg and workstream update

energynetworks.org 1

PRESENTED BY Andrew Neves, Chair CMG

CMG and Workstream Update

3 June 2010 energynetworks.org 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


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


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

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

energynetworks.org 53 June 2010

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


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)


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


WSB Update (cont.)

3. Network interconnections• LDNOs: portfolio with CDCM-like and EDCM-like

parts•Offshore: portfolio ?•DNO-to-DNO: treat as demand?


Next steps

• Agree key outstanding issues and seek positive 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


Revised EDCM timeline


energynetworks.org 1 presented by andrew neves, chair cmg cmg and workstream update

Documents