Update from DCMF MIG Claire Campbell Chair – DCMF MIG 05 April | Energy Networks Association - DCMF

Work In progress Update from the working group presented at DCMF MIG on 22 March 2012 Working Group to draft DCP specifying common principles and intent for a common model MIG 01- Commonality of the network (500MW) model The MIG can not act on this until COG sub-group reports back Target DCUSA Panel date – July 2012 MIG 07 (inc 17) – Excess capacity management and de-energised site charges At the point of beginning data analysis The working group last met on 27 March 2012 MIG 10 (inc 4) - Generation in demand rich areas Drafting DCP which will seek to introduce three rate time band for NHH UMS PC5-8 draft DCP for consistency in input data Target DCUSA Panel date – July 2012 MIG 12, 22 and 02 - Use of HH and NHH forecast data for costing COG have approved the appointment of Frontier to undertake work on this issue MIG 30 - The introduction of Long Term Products 05 April | Energy Networks Association - DCMF

Open Issues In the plan to start July 2012 MIG 15 – Time of day time bands to Seasonal time of day time bands A DCP has been drafted to incorporate Method M in the DCUSA MIG 31 – To bring Method M under DCUSA governance A DCP has been drafted to incorporate Extended Method M in the DCUSA MIG 32 - To bring the Extended Method M under DCUSA governance To be discussed at the MIG on 19 th April MIG 33 – To review the treatment of asset replacement in CDCM Customer Contributions Combining Method M and Extended Method M (including mapping of new RRP tables) CDCM User Manual Workstream C 3 | Energy Networks Association - DCMF 05 April 2012

Super Group(1) The super group meets fortnightly, with the group’s next meeting scheduled for 16 April 2012 Super group meetings A template demonstrating how the annual review pack would be updated to incorporate the data used to calculate the three year rolling averages, has been circulated for DNOs to populate A draft RFI is under development MIG 34 – Improving the predictability and transparency of CDCM inputs Replace the current table 1076 with a new table identical to the DCP66A submissions. DNOs will been invited to suggest amendments to the ENW DCP066 template which would improve transparency MIG 35 - Improving the transparency of CDCM target revenue Assets costs contained within tables 1020, 1022 and 1023 are reviewed at fixed intervals A template capturing the requirements for this issue is to be drafted by 16 April 2012 MIG 36 - Improving the stability and predictability of CDCM model inputs 4 | Energy Networks Association - DCMF 05 April 2012

Super Group(2) Information provided along with tariff changes be considered within the scope of the super group. The MIG has determined that other issues associated with MIG 39 sit outside of the scope of the super group MIG 39 - CDCM charges - 1st April 2012 The working group is considering a solution in which a 15 month notice period would only relate to DNO led time-band changes; whereas time-band changes required as a result of an Ofgem approved DCUSA change would not be subject to this requirement. MIG 40 - Implementation of notice in DCUSA for changes to distribution time- bands Investigate the volatility of volume inputs to the CDCM and potential methods of increasing the predictability and/or stability of the inputs and therefore tariffs. Through either a methodology for smoothing of the inputs, or by provision of regular accurate best view volume forecasts throughout the year MIG 41 – Improving the predictability of volume forecast inputs to the CDCM 5 | Energy Networks Association - DCMF 05 April 2012

Billing Group The first meeting of the billing group will be on 10 April (invitations to join the group closed on 4 April – however, if you are interested in joining the group contact ElectraLink) First meeting MIG 19 – Charging of reactive energy where there is no reactive data MIG 28 – Application threshold for excess reactive power unit charges MIG 37 – Improving commonality in HH data estimation applied by DNOs and prohibiting penal charges in the CDCM MIG 38 – Improving commonality in the application of the CDCM Commonality issues identified by Edward Coleman in addition to those listed above MIG 16 – De-linking Areas for consideration 6 | Energy Networks Association - DCMF 05 April 2012