1. Update on IDNO/DNO working group DCMF 12 November 2009

2. 2 Background Working group established in July 2008 to provide a forum for IDNOs and DNOs to talk openly about charging arrangements and facilitate the development of new charges for IDNOs capable of facilitating greater competition in distribution Specific terms of reference included: 1.Delivery of interim capacity ramping modifications 2.Delivery of interim UoS charging modifications for April 2009- April 2010 3.Development and delivery of IDNO CDCM for April 2010 4.To monitor the commercial arrangements surrounding boundary metering

3. 3 Progress to date After almost 18 months we consider that many of these issues have been progressed: All DNOs have capacity ramping mods in place All DNOs have now submitted interim mods (EDF about to resubmit) DNOs have submitted CDCM Ofgem consulting on boundary metering Not suggesting that the group has been plain sailing; Severe delays in implementation of interim mods Still issues in CDCM which need addressing Still awaiting final decision on boundary metering But... Group seems to have finally achieved many of its initial aims

4. 4 New format of working group Ofgem to take a step back from Chairing, overseeing and directing the working group. List of issues still to progress: HV split Generation tariffs Portfolio billing EDCM But in line with other charging forums, we consider that industry should now lead these debates with Ofgem in attendance not directing. Keen that the group continues and understand that they are looking towards appointing an independent chair to help address remaining issues prior to open governance and implementation of EDCM Does not mean that pressure is off DNOs to deliver. We will closely monitor progress and ultimately DNOs have to satisfy the licence conditions placed upon them by CDCM & EDCM.

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