Ofgem has a duty to consider the methodologies used by electricity Distribution Network Operators (DNOs) to set charges for connection to and use of their distribution systems.
DNOs have recently been developing common approaches to charging via the electricity distribution structure of charges project, and:
• from 1 April 2010 DNOs have implemented a common charging approach (the CDCM) at lower voltage levels (HV and LV).
• DNOs are continuing to work towards common charging approaches at the highest (EHV) voltage levels (the EDCM), for implementation from 1 April 2012. These are designed to deliver more forward looking, locational charges.
• from 1 October 2010 DNOs implemented largely common connection charging methodologies.
The Distribution Charging and Methodologies Forum (DCMF) is the industry group that discusses charging issues. Proposed changes to CDCM are now progressed through DCUSA under new open governance arrangements, and the new methodology document sits within DCUSA. DNOs maintain separate charging methodologies at EHV, however, when implemented, the EDCM will also sit within DCUSA.
Further DNO information on common charging can be found at the following links: EDCM / CDCM. DNOs’ current use of system charges are published in a common spreadsheet format at the following link.
Documents on the project to deliver revised charging methodologies are provided via the links below. Other related areas on our website are as follows:
• Modifications to DNOs’ charging methodologies (including modifications to bring in the largely common connection arrangements) are detailed on our ‘Distribution Charging Modifications’ page.
• Links to individual DNO charging documents can be found in the further resources box on the right had side of this page.