CMG and Workstream Update

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Presentation transcript:

CMG and Workstream Update The primary focus has been to support Reckon LLP (the Energy Networks Association (ENA) appointed consultant) who is developing the new distribution reinforcement (DRM) charging model. PRESENTED BY Andrew Neves, Chair CMG energynetworks.org 1 1

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

Workstream A Update Developed common understanding of the individual EDCM methodologies outlined in Ofgem July 2009 decision document, including: common implementation common inputs and outputs Delivered commonality between the two EDCM methodologies where possible. 1 April 2010 energynetworks.org 3 3

Workstream A Update (cont.) Produced ‘Working Draft’ LRIC / FCP Methodology Statements and Implementation and Guidance Notes: sent to Ofgem for review published on the ENA’s website DNOs currently analysing their networks Continuing development as issues are identified 1 April 2010 energynetworks.org 4 4

Workstream B Update Key deliverables Response to CDCM condition on generation-dominated areas Common EDCM / CDCM boundary EDCM (model and methodology documents) 1 April 2010 energynetworks.org 5 5

Workstream B Update (cont.) EDCM / CDCM boundary options being considered WSA / WSB data interface principles agreed load flow models (LRIC / FCP) produce £/kVA/year data for nodes / network groups Modeling requirements and commonality issues debated and raised with Ofgem Development of IDNO charging underway Pre-2005 generation issues being debated 1 April 2010 energynetworks.org 6 6

Workstream B Update (cont.) Key Issues Tariff structures separate import/export tariffs consumption/capacity? Cost Allocation sole user asset charges Scaling Methods generation – preferred option: no scaling, other options? demand – based on notional revenue from EHV assets (several options) LDNOs – EHV embedded networks ‘portfolio’ basis for HV/LV end users site-specific locational basisfor EHV end users Treatment of non-LDNO interconnectors (e.g. OFTOs) 1 April 2010 energynetworks.org 7 7

Next steps Agree key outstanding issues and seek positive opinion from Ofgem Draft EDCM methodology and model Steer DNOs’ work to populate models Revise project timeline following discussions with Ofgem Address CDCM generation-dominated areas 1 April 2010 energynetworks.org 8 8

Revised EDCM timeline 1 April 2010 energynetworks.org 9 9

EDCM key date changes 1 April 2010 energynetworks.org 10 10