DCP450 Distribution Connection and Use of System Agreement (DCUSA) changes
- Publication type:
- Code modification
- Publication date:
- Topic:
- Energy codes
- Subtopic:
- Distribution connection and use of system agreement (DCUSA)
- Industry sector:
- Distribution Network
Outcome of changes to Distribution Connection and Use of System Agreement DCP450, Managing the effects of surplus residual charge in the CDCM.
Details of outcome
We have accepted modification proposal DCP450, which was received from DCUSA Panel on 15 September 2025.
Start date
The implementation date for Modification Proposal DCP450 is 1 April 2027.
Code modification description
The modification proposal DCP450, titled “Managing the Effects of Surplus Residual Charge in the CDCM,” was raised by Eastern Power Networks on 10 February 2025. The change was requested to address a defect in the Common Distribution Charging Methodology (CDCM) where excessive surplus residuals can prevent the production of a complete set of tariffs. The modification introduces a new step in the charging methodology that allows Distribution Network Operators to uniformly reduce an input - the gross asset value in the Distribution Reinforcement Model - when the surplus residual adjustment process fails. This ensures that tariffs can be produced without requiring derogations from licence conditions.
We approved the proposal with an implementation date for 1 April 2027 tariffs. This change improves efficiency and transparency in tariff-setting, reduces reliance on derogation processes, and better facilitates DCUSA Charging Objectives One, Two, and Six. It applies only to the CDCM and does not address similar issues in the Extra-High Voltage Distribution Charging Methodology (EDCM).