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Proposed Modifications to ENW's EHV Charging Methodology: Key Updates and Implications

This document outlines proposed modifications to Electricity North West's (ENW) Interim EHV Charging Methodology, effective April 2011. It details changes including a site-specific demand methodology, generation methodology based on current Distributed Generation (DG) revenue, and the exclusion of pre-2005 DG. The Interim Modification Proposals cite historical context, previous submissions, and intended revisions aligning with Ofgem consultations. Key proposals include adjustments for discounts on tariff components and a commitment to common charging approaches by April 2011.

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Proposed Modifications to ENW's EHV Charging Methodology: Key Updates and Implications

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  1. Proposed and recent Modification Proposals Simon Brooke Commercial Manager

  2. ENW’s Interim EHV Charging Methodology • New EHV Distribution Charging Methodology from April 2011 • Interim EHV Charging Methodology Modification Proposal submitted on 1 Sept. ’09 (available at www.enwltd.co.uk) • Modification proposes ‘minimum methodological change’ • Demand ‘site-specific’ methodology with calculated EHV allowed revenue; and • Generation methodology based on current DG Allowed Revenue • Excludes pre-2005 DG for interim period

  3. ENW’s Interim LDNO Charging Methodology • Interim Modification Proposal submitted in Jun ‘09 • Proposal based on Reckon net capex methodology developed in Ofgem facilitated IDNO/LNO meetings • Ofgem consulted on ENW during Jul ‘09 • ENW withdrew this modification proposal on 9 Sept ‘09 • ENW intends to submit revised modification proposal based on CDCM with: • Retrospection to April 2009 • Discount applied to all tariff components • Portfolio option available • Consistent with proposed Interim EHV LDNO charging methodology

  4. Interim EHV LDNO Charging Methodology Common Connection Charging Methodology Submit modification proposal to apply recommendation from WS4 Implement by 1 April 2010 EHV Distribution Charging Methodology Involvement in development of common FCP and common LRIC approaches Implement no later than 1 April 2011 Others

  5. A proposal for an EHV LDNO Charging Methodology Simon Brooke Commercial Manager

  6. Background • Common Distribution Charging Methodology submitted to Authority on 25 August 2009 • Submission included CDCM and LDNO (“Method M”) Models • Consultation on Code of Practice for portfolio billing on-going • New EDCM implemented by 1 April 2011 • EDCM requires discussion between parties • ENW will soon have three EHV LDNO connections, all charges calculated using approved methodology

  7. Proposal for Interim Period • Extend the Method M model to derive percentage discounts for EHV network levels • Use the MEAV split to separate costs at EHV and 132kV for 33/11kV, 33kV, 132/33kV and 132kV network levels, where applicable • Utilise the principles applied for the sharing of HV network to 33kV and 132kV networks, where applicable

  8. Illustrative percentage discounts 33kV 132kV

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