WPD modification requests UOS
015/016
and
Derogations from CDCM
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Modification Request 015
• Modification request was submitted to Ofgem on 11th
December 2009 with following elements:
– Update of the 'Reconciliation of LRIC and DRM output to required revenue' to
ensure the calculation of the £/kVA revenue scaler remains effective following the
introduction of the CDCM;
– Update references to licence conditions;
– Replace a large section on the requirements to have a UoS agreement and the
terms in those agreements with a single reference to the Distribution Connection
and Use of System Agreement (DCUSA);
– Remove the 10% cap on generator charge changes;
– Update references to regulatory cost of capital following the publication of the
DPCR5 final proposals;
– Introduce a capping arrangement to address the calculation of excessive
charges in certain circumstances; and
– Remove the exemption that excludes EHV generators connected pre-April 2005
from paying UoS charges and introduce specific arrangements to ensure that
there is no undue discrimination between pre- and post-April 2005 generators.
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Modification Request 015
• Prior to submitting the modification request, we presented the
main elements of this modification request at our CDCM
stakeholder workshop that we held on 1st December 2009
• Ofgem issued a notice of consultation on 21 December 2009
• We need to issue final prices with 40 days notice by 19th
February 2010
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Timetable of modification
• Originally submitted to Ofgem 4 December 2009
• Re-submitted 11 December 2009 following Ofgem request to update
after final proposals published
• Ofgem issued notice of consultation on 21 December 2009
• 6 January 2010 request from Ofgem for further information (provided
on 6 Jan)
• Friday 8 January Ofgem asked for resubmission as input data in
mod request different to that in indicatives
• Re submitted on 11 January 2010
• Ofgem consultation issued on 14 January 2010
• Responses due by Thursday 11 February 2010
• Impact if decision not made before 19 February 2010
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Impact of veto or decision after 19
February 2010
• HV/LV parts of existing methodology will be revoked on 01/04/2010
under SLC50 and replaced by CDCM
• Split of revenue between EHV and lower voltages will be based on
old rather new 500MW model in CDCM
• At EHV Demand and Generation allowed revenues will continue to
be treated separately giving significantly different prices for post
April 2005 EHV DG compared to indicatives and continuation of
10% cap on EHV generator charges
• There will be no charges for pre April 2005 EHV DG
• Re distribution of revenues resulting from above will change CDCM
indicative prices
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Update on derogations from CDCM
• 4 requests were made in August 2009
• 1withdrawn
– associated with de-energised MPANs
• 2 have been granted until 30 September 2010
– calculation of capacity (kVA) values and
– calculation of chargeable reactive power units
• 1 associated with IDNO portfolio billing awaits progress on any
interim solutions before a decision is made
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