1. DCMF Meeting – January 26th 2009
SGN’s Jan 09 Mod 186 Report
DCMF Meeting – January 26th 2009

2. Scotland Revenue Data

3. Scotland – Commentary (1)
2007/08
Pass through movement is due to a reduction in Formula Rates and Licence Fees
The increase in the Mains Replacement allowance has outweighed the decrease in the Shrinkage allowance
K movement is an under recovery from 2006/7
The under recovery in 2007/08 is mainly due to the under recovery being brought forward from 2006/07 - this effect being reduced by the higher than forecast throughput
2008/09
Pass through movement is due to a change in Formula Rates, NTS Pension and Licence Fees
Incentive movement is primarily driven decreases in the Shrinkage and Mains Replacement allowance offsetting increases in Innovation Funding allowance
K movement is an under recovery from 2007/08
95/5 Capacity/Commodity methodology implemented from 1 October 2008

4. Scotland – Commentary (2)
2009/ /13
Pass through movement is due to a change in Formula Rates, NTS Pension, Licence Fees and the Traffic Management Act
Incentive movement includes increases in the Environmental Emissions, Exit Incentive, Innovation Funding Incentive mechanisms - and the Discretionary Reward Scheme from 2010/11 - offsetting a decrease in the shrinkage allowance.
Sensitivity Analysis – Refer to published report
Further Information
* This is an increase to new rates under 95/5 methodology, not an increase to Oct 07 rates
Disclaimer - Refer to published report

5. Southern Revenue Data

6. Southern – Commentary (1)
2007/8
Pass through movement is due to a reduction in Formula Rates and Licence Fees
The decrease in the Shrinkage allowance has offset increases in Mains Replacement and Exit Incentive allowances
K movement is an under recovery from 2006/7
The over recovery is due to higher than forecast volumes
2008/9
Pass through movement is due to a change in Formula Rates, NTS pension and Licence Fees
Incentive movement is primarily driven decreases in the Shrinkage and Mains Replacement allowance offsetting increases in Innovation and Exit Incentive allowances
K movement is an over recovery from 2007/08
95/5 Capacity/Commodity methodology implemented from 1 October 2008

7. Southern – Commentary (2)
2009/ /13
Pass through movement is due to a change in Formula Rates, NTS Pension, Licence Fees and the Traffic Management Act
Incentive movement includes increases in the Environmental Emissions, Exit Incentive, Innovation Funding Incentive mechanisms - and the Discretionary Reward Scheme from 2010/11 - offsetting a decrease in the shrinkage allowance
Sensitivity Analysis – Refer to published report
Further Information
* This is an increase to new rates under 95/5 methodology, not an increase to Oct 07 rates
Disclaimer - Refer to published report