Update from DCMF MIG

1. Update from DCMF MIG 06 October 2011 Simon Yeo Chair – DCMF MIG 1 | Energy Networks Association - DCMF

2. Work In progress 06 October 2011 • MIG 001- Commonality of the network (500MW) model • Chaired by Gregory Edwards (WPD) • Progress is being made and looks to be on schedule to complete “Stage 1 – Qualitative Stage” by the end of October • After Stage 1 is complete, the MIG will evaluate the work that has been completed 2 | Energy Networks Association - DCMF

3. Work In progress 06 October 2011 • MIG 10 (inc 4) - Generation in demand rich areas • Sub Group has been established and chaired by Oliver Day • First meeting was held on 27 September 2011 • Draft Terms of Reference have been circulated and agreed among the sub-group members • Target implementation date April 2013 • Next meeting is scheduled for 18 October 2011 3 | Energy Networks Association - DCMF

4. Work In progress 06 October 2011 • MIG 12, 22 and 2- Use of HH and NHH forecast data for costing. • Sub-Group has been established and will be chaired by Pat Wormald • First meeting will be held on 13 October 2011 • The first task of the sub-group will be to review and agree its Terms of Reference • Target implementation date is April 2013 4 | Energy Networks Association - DCMF

5. Work in Progress 06 October 2011 5 | Energy Networks Association – DCMF • MIG 026 – CDCM default tariff application • Issue was raised by Edward Coleman • Questionnaire has been circulated, and there was a low response rate. Non respondents are to be followed up before deciding next steps of this issue. • MIG 07 (inc 17) - Excess capacity management and de-energised site charges • It was considered that this was not an issue that was ready for a change proposal yet but there is a lot to be discussed so a group of interested parties should be formed. Harvey Jones suggested scoping of the issue under a future DCMF and the establishment of a working group.

6. Work in Progress 06 October 2011 6 | Energy Networks Association – DCMF • MIG 013 - HH generation intermittent / non-intermittent tariffs • This issue was raised by Jonathan Purdy/Tim Russell • This proposal is to remove the single rate generation tariff.  Or to allow the intermittent single rate generators to choose to move to a three rate tariff. For the benefit of doubt this wouldn’t allow those on a three rate to move to a single rate. • This has now been submitted to DCUSA, and is now DCP 108

7. Work in Progress 06 October 2011 7 | Energy Networks Association – DCMF • MIG 015 - Time of day time bands to Seasonal time of day time bands. • This issue has been raised by Jonathan Purdy • This proposal would remove the restriction preventing DNOs applying seasonal time of day tariffs allowing DNOs to apply peak charges at times of network peak rather than the current restriction applying peak charges all year

8. Work in Progress 06 October 2011 8 | Energy Networks Association – DCMF • MIG 015 - Time of day time bands to Seasonal time of day time bands. • This issue has been raised by Jonathan Purdy • This proposal would remove the restriction preventing DNOs applying seasonal time of day tariffs allowing DNOs to apply peak charges at times of network peak rather than the current restriction applying peak charges all year • MIG 019 - Charging of reactive energy where there is no reactive data • This issue has been raised by Edward Coleman • Questionnaire circulated and completed and to be reviewed at MIG 007

9. Work in Progress 06 October 2011 9 | Energy Networks Association – DCMF • MIG 03 - Reactive proxy data • This issue is being progressed by Simon Yeo • Target implementation date is April 2014

10. Open Issues 06 October 2011 • MIG 016- De-Linking • This proposal would formalise arrangements to allow for a common approach to having DNO NHH time periods de-linked from settlement time periods. • Start Date – April 2012 • Target Implementation Date – April 2014 10 | Energy Networks Association - DCMF

11. Issue that have moved to CPs 06 October 2011 11 | Energy Networks Association – DCMF MIG Issue 5 – IDNO Charging: Allocation of cost ot HV connected IDNOs – DCP 071A MIG Issues 6 & 9 – Input Data Standardisation – DCP 086 (Annual Review Pack) and DCP 087 (Smoothing of Load Characteristics) MIG Issues 23/24 – CDCM Mid-year Model and Data format – DCP 088 MIG Issue 13 – HH Generation intermittent/Non-intermittent – DCP 108

12. New Issues 06 October 2011 12 | Energy Networks Association – DCMF • Issue: Excessive charges in red time band • Submitted by Franck Latrémolière • Issue: Application threshold for excess reactive power unit charges • Submitted by Franck Latrémolière

13. 2011 Meeting Dates 06 October 2011 Thursday, 20 October Thursday, 17 November Thursday, 15 December 13 | Energy Networks Association – DCMF

14. MIG Process and Governance Update 06 October 2011 MIG Process and Governance Update 14 | Energy Networks Association – DCMF

15. MIG Process and Governance Update • 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 ‘Methodologies Issues Group’ agreed in October 2010 06 October 2011 15 | Energy Networks Association – DCMF

16. MIG Process and Governance Update • Objectives of the MIG: • 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 Distribution Connection Use of System Agreement (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 interpret their issues with the charging methodologies into a feasible change request that the DCUSA process can consider. 16 | Energy Networks Association – DCMF 06 October 2011

17. Overview of Process Originator DCMF MIG DCMF DCUSA Issue submitted Issue defined Recommendation Decision CP Raised Modelling Resource Working Group Change Report Voting Outcome Implemented 06 October 2011

18. MIG Process and Governance Update • Advantages of utilising the MIG process: • To give new issues a formalised place within the process and assist Parties to formulate CPs • Provide a focused review of an issue(s), and to identify any conflicting issues and also those which can be consolidated together • To refine and develop Change Proposals before the formal DCUSA change process • Issues that have been fully developed within the MIG will likely improve the change of success for it as a CP • Improvement areas: • Timeline from the MIG to formal DCUSA change process • The amount of time it takes to analyse the issue will likely be the same if Parties bypass the MIG, as the work will take place in the DCUSA process, without all the advantages and access to an expert group of knowledge housed within the MIG. 18 | Energy Networks Association – DCMF 06 October 2011

19. MIG Process and Governance Update • Ideas for Improvement: • Central Coordination for the MIG and MIG subgroups - to provide the impetus to drive issues and meetings forward • With/without Secretarial support provided • Point of contact for subgroup Chair(s) and the members • Scheduling meetings • Creating and managing timetables for the groups • Parties – Understanding the issues and problems and allocating the appropriate amount of resources to efficiently move the issues forward • Parties – Issues that are raised during the Annual Review Process – there is a need for additional follow-up activities • MIG/DCMF/DCUSA – More communication and effective planning 19 | Energy Networks Association – DCMF 06 October 2011