Update from DCMF MIG Update from the Distribution Charging Methodologies Forum (DCMF) Methodologies Issue Group (MIG) 3 December | Energy Networks Association - DCMF

Work In progress DCP 130 was raised at the May 2012 DCUSA Panel Meeting the intention of removing the discrepancy between the HH and NHH UMS tariffs, awaiting Ofgem’s decision. For PC1-8 the NHH/HH subgroup is considering an enduring solution, targeted for implementation in April MIG 12, 22 and 02 - Use of HH and NHH forecast data for costing A final report produced by Frontier has been submitted to Ofgem, awaiting Ofgem’s decision. MIG 30 - The introduction of Long Term Products 6 December | Energy Networks Association - DCMF

Open Issues 3 | Energy Networks Association - DCMF 6 December 2012 Due to start 2013 MIG 15 – Time of day time bands to Seasonal time of day time bands Due to start March 2013 MIG 33 – To review the treatment of asset replacement in CDCM Customer Contributions - MIG Issue 41 – The first meeting of the Customer Contributions Group was held on 5 December, if you wish to be added onto this group please ElectraLink Combining Method M and Extended Method M (including mapping of new RRP tables) - will start following the models incorporation into DCUSA (DCPs 128 and 129) Workstream C This will be discussed at the January 2013 MIG meeting MIG 28 – Calculation of excessive reactive power units

Open Issues 4 | Energy Networks Association - DCMF 3 December 2012 The following EDCM Development Issues and Customer Measures are due to start Q1 2013: MIG Issue 42 - EDCM Customer Measure 3 – to assess measures to reduce volatility MIG Issue 43 - EDCM Customer Measure 4 – to provide visibility of cost signals MIG Issue 44 - EDCM Development Issue 1 – Consideration of peak time reactive flows MIG Issue 45 - EDCM Development Issue 2 – LDNO discount on 20% of residual revenue MIG Issue 49 - EDCM Development Issue 3 – Customer Categories – consideration of assets below the voltage of connection MIG Issue 46 - EDCM Development Issue 4 – Capping of LDNO discounts at 100 per cent. EDCM Development Issues and Customer Measures MIG 47 – Application of FCP charges to different customer categories To start following the decision on DCP139 ‘ Non-Application of FCP charge for Category 0000 Customers’, awaiting Ofgem’s decision.

Billing Group Following the work of the DCMF MIG Billing Group nine DCPs were raised at the July 2012 DCUSA Panel meeting 4 of the CPs have went out for voting with the deadline being 7 December 2012 The other 5 CPs are going to the December Panel and will be sent out for voting this month Once the above DCPs have been concluded, the group will begin to consider MIG Issue 16 – De-linking DCMF MIG Billing Group – DCPs 141 to | Energy Networks Association - DCMF 3 December 2012