1 st April 2010 energynetworks.org 1 Common Methodology Group Work PRESENTED BY Tony McEntee, ENW Workstream 4 Update Common Connection Charging Methodology

energynetworks.org 2 WorkStream 4 - CCCM All DNOs have (or will shortly) submitted a charging modification based on the CCCM First modifications submitted 26 th March 2010 Ofgem have until 23 rd April to veto, not veto or consult Ofgem are to consult on the proposals Veto or not veto decision required within three months of the notice to consult CCCM Target Implementation Date – 1 st July 2010 Future Governance? 1st April 2010

PROPOSED CCCM AND CHARGING STATEMENT TEMPLATE Section 1 – General Information Provides basic overview of each DNO, the connections processes and dispute mechanism Section 2 – Applying for a connection where we undertake all of the relevant work Highlights basic processes Section 3 – Applying for a connection where an ICP undertakes the Contestable Work Highlights basic processes Section 4 – Information Specific to the Company Allows DNOs to provide other information not part of Methodology or Statement Section 5 - Common Connection Charging Methodology The detailed CCCM which will apply across all DNOs and includes a number of examples which explain the application of the methodology in various circumstances Section 6 – Company Specific Connection Charging Methodology Other aspects of the methodology that are not common across all the DNOs Section 7 – Connection Charging Statement DNOs are required to publish indicative charges for connection. Must now be a common template. The form of this statement is approved by the Authority Section 8 – Glossary of Terms This section provides definitions for all the terms used in the document 1st April

energynetworks.org 4 Connection Charging Methodology Intention to keep the current connection boundary Also to provide consistent wording for all DNOs To provide greater clarity than existing statements More expansive definition of minimum scheme Common examples to explain the application of the methodology 1st April 2010

energynetworks.org 5 Connection Charging Statement New Licence Condition (SLC14.14), template must be common across all licensees. More comprehensive/ detailed template Developed in conjunction with customer reps from ECSG The form of statement must be approved 1st April 2010