Structure of charges update: consultation responses

Presentation to the electricity DCMF5 February 2009

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Update

• Our December consultation asked for views on the next steps for the project, and whether industry is supportive of Ofgem prioritising its resources on this project– We met bilaterally with stakeholders who requested a meeting in December / January

• Consultation closed 22 January• Intend to raise at the February meeting of the Authority

• Through the consultation period DNOs have made progress voluntarily on common HV/LV charging arrangements for 2010– We have been attending work stream meetings– We met with DNOs on HV/LV issues on 16 January and wrote to them on 22 January with

initial thoughts on the issues raised

• During the consultation period SP and SSE published an industry “briefing” paper saying work would stop on HV/LV issues if we referred the project to the CC now

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Consultation responses• There was some support for an immediate CC referral. A number

of response advocated more time be given for the industry to resolve the matter itself– A number of responses stated a CC referral may be necessary to

resolve EHV issues

• Overall, consultation responses were strongly in favour of ‘banking’ HV/LV progress via a licence modification. The main benefits were perceived to be at HV/LV. – These responses generally suggested allowing the industry more

time to consider EHV arrangements– Some responses said refer to CC after a period of time if the industry

cannot resolve EHV issue itself– Some DNOs questioned whether an HV/LV CLM is necessary, others

said it would be appropriate

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