1. DCMF SIG terms of reference Harvey Jones Elizabeth Lawlor 2 December 2010 1 | Energy Networks Association - DCMF

2. Background DCMF ‘Open Governance’ process developed in April 2010 in response to CDCM and EDCM DCMF tasked with managing charging methodologies issues and communicating and debating solutions Requirement for DCMF ‘Standing Issues Group’ agreed in October 2010

3. Objectives Provide a pre-assessment process to scope and development possible solutions for Charging Methodologies issues in order to develop Change Proposals that are reasonably capable of assessment under the DCUSA Carry out an annual assessment in line with the DNOs’ licence obligation to annually review the charging methodologies Carry out its business in an open and inclusive manner, assisting stakeholders to interpret their issues with the charging methodologies into a feasible change request that the DCUSA process can consider.

4. 6 step problem solving process 1.Identify / define the issue 2.Gather information relative to the issue 3.List possible solutions 4.Test possible solutions 5.Select best solution 6.Implement chosen solution

5. 6 step problem solving process 1.Identify / define the issue - DCMF 2.Gather information relative to the issue - DCMF 3.List possible solutions - DCMF 4.Test possible solutions – DCUSA 5.Select best solution - DCUSA 6.Implement chosen solution - DCUSA

6. Scope Defining issues submitted to the group Gathering information relative to the issue Identifying possible solutions Reporting findings to the DCMF / DCUSA Panel

7. Overview of Process DCMF SIG CP Raised Working Group Outcome Change Report Implemented DCMF Modelling Resource Decision Voting Originator Issue submittedIssue definedRecommendation DCUSA

8. Terms of Reference Summary Membership Open meetings with no limit on numbers 2 categories – ‘DNO’ and ‘Associate’ Required to act independently as industry experts Chair DNO Member Appointed on annual basis Frequency TBC – proposed monthly Only convened when sufficient business Urgent meetings at request of Chair

9. Terms of Reference – Summary Quorum Minimum 2 members in person or by teleconference At least 1 DNO member Subgroups Established by DCMF SIG Operate in accordance with DCMF SIG ToR Complete a more detailed review / propose solutions Decision making Recommendations by majority consensus of members present No power of veto Report back to DCMF

10. Terms of Reference – Summary Funding Funded through ENA No member expenses Decision making Recommendations by majority consensus of members present No power of veto Report back to DCMF

11. Terms of Reference – Summary Reporting Reports to the DCMF Written report from the SIG to the DCMF: Summary of issues discussed Information items / decision items Progress of issues Task list / work plan Updates to DCUSA Panel as required Updates of DCUSA modification process

12. Terms of Reference – Summary Secretariat Provided by ElectraLink Ltd Pre and post meeting support Technical secretariat support Production of reports to DCMF and DCUSA Expert advice on application of processes Operate within agreed service delivery targets