Review Group 178 SSP as Domestic only

Summary The review is looking at whether removing non-domestic sites from the small supply point (SSP) market would be sensible The following slides concentrate on the reconciliation impacts and make high level assessment on whether improvements could be anticipated It is worth reviewing the numbers impacted: I&C sites within the SSP market 380,000 (60% of I&C) Domestic sites within the LSP market 58,000 (0.5% of domestic) Based on AQ the net change in SSP aggregate AQ would be: Remove 10,000 from SSP to LSP Add 8,000 to SSP from LSP Change in EUC1 total AQ = 0.5%, change in EUC2 total AQ = 1.3% Theme Date Department

Why is it appropriate to move the I&C sites? Currently the 380,000 sites are allocated using a profile derived from Domestic consumption patterns Reconciliation is through RbD Any misallocation to these sites will contribute to the overall smear through scaling factor and be picked up through increased risk in RbD charges Theme Date Department

What does the profile of SSP I&C look like? Better fit over crucial winter period Theme Date Department

How does this translate to reconciliation? Theme Date Department

Benefit of more accurate profiles Lower reconciliation for these sites, even without a specific profile More appropriate allocation potentially leading to a lower scaling factor and therefore better charging across all NDM sites Lower reconciliation will mean that these sites will not fail the filter and will not increase the number of filter failures Theme Date Department

What does the profile of a LSP Domestic look like? Better fit over crucial winter period Better fit over summer period Theme Date Department

How does this translate to reconciliation? Theme Date Department

Benefit of more accurate profiles Lower ‘reconciliation’ for large Domestic sites More appropriate allocation potentially leading to a lower scaling factor and therefore better charging across all NDM sites Lower reconciliation will mean that these sites are not losing substantially from not being individually reconciled and will contribute to improving overall allocation Theme Date Department

How could this be made to work? Key variable is market sector flag – need to concentrate rules for this New EUC to be created (EUC band 2A) for I&C flagged sites <73,200Kwh All domestic flagged sites to be included in EUC band 1 RbD to continue to operate for EUC band 1 sites Individual supply point reconciliation for EUC bands 2, 2A and above Theme Date Department