1. Impact of CDCM on unmetered energy 4Mar2010 Presented by Tom Chevalier

2.  Unmetered energy (2008/09 settlement year):  3,850 GWh  1.16% of settlement demand  202 HH MPANs  30,874 NHH MPANs  BSC allows for NHH & HH trading  Historic regional variance  Customers developing energy saving schemes  Part night lighting  Part night dimming  Government incentives to reduce emissions

5.  Better for bigger customers  Better for small customers  Red, Amber, Green  HH billing  Billing data visible  HH data reflects actual consumption profile  Distributor ‘protected’ from change of profile by RAG charges  Single rate  NHH billing  Billing data obscure  NHH data is profiled using PC1 & 8  Distributor ‘exposed’ to customer change of profile

6.  Single rate NHH DUoS does not reflect usage times  NHH profiles contribute to Group Correction error  Do not want to disadvantage the more accurate method of trading for customers/suppliers  Large customer billing errors not so apparent CE Electric

7.  Review unmetered DUoS charging in 2011/12:  modify the NHH charge structure away from the current CDCM single rate to make it more cost reflective, utilisation the existing different codes:  A – Continuous (lower)  B - Dusk to Dawn (similar to published average)  C - Half night and pre-dawn (highest)  D - Dawn to Dusk (higher)  link the NHH & HH charges so that they do not diverge significantly