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Update on charging methodologies

Update on charging methodologies. Harvey Jones. On the 20 May CE UK submitted proposals to Ofgem to replace its connections charging methodology with a common charging methodology. The common methodology clarified a number of points:

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Update on charging methodologies

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  1. Update on charging methodologies Harvey Jones

  2. On the 20 May CE UK submitted proposals to Ofgem to replace its connections charging methodology with a common charging methodology • The common methodology clarified a number of points: • Conditions to which the minimum scheme is subject – the minimum scheme being based on the capital cost rather than whole life cost • Charge associated with the minimum scheme to act as a cap on the connection charge; • Definition of reinforcement as “assets installed that add capacity (network or fault) to the existing shared use distribution system” • Measurement of New network capacity (NNC): the new methodology defines the relevant network that should be considered when measuring the NNC • Capitalised Operation and Maintenance (O&M)defined: now reflects the cost of capital used in DPCR 5. 2

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