On 25th August 2009 the 7 DNOs operating in Great Britain (CE Electric, Central Networks, EDF Energy Networks, Electricity North West, SP Energy Networks, SSE Power Distribution and Western Power Distribution), on behalf of the 14 entities licensed as Distribution Service Providers jointly submitted to the Authority an agreed common methodology, for the calculation of the Distribution Use of System (DUoS) charges to customers connected to the High Voltage (HV) and Low Voltage (LV) levels of their network.

The central webpage of the project (http://2009.energynetworks.org/structure-of-charges/) contains the full package submitted to Ofgem, which comprises:

• a CDCM report detailing the rationale and justification for the chosen methodology
• a summary of responses to the June/July 2009 Consultation
• a CDCM methodology statement
• tables of illustrative tariffs and time bands for each DNO
• an appendix detailing significant tariff movements for each DNO
• an appendix detailing ‘areas of risk’ for each DNO
• populated CDCM models
• individual letters from each DNO group ‘signing on’ to the CDCM

The same webpage contains information and archived materials from the evolution of the project (action logs, consultations, previous models, etc).  

The CDCM is planned to take effect in April 2010, subject to the Authority’s approval. This will have a significant impact on the level of DUoS charges faced by some customer groups. In general, the changes are the result of the implementation of a more cost-reflective methodology for the calculation of the tariffs.  Please note that the DUoS charge only forms a proportion of the overall electricity bill, and the actual effect on the customer’s final bill will depend on each supplier’s strategy for implementation.

In the links below, you will find information specific to SP Energy Networks.

• Illustrative 09-10 prices for SPD and SPM
• Explanation of large tariff movements
• Areas of risk for implementation, as identified in the CDCM submission
• Populated CDCM model for SP Distribution
• Populated CDCM model for SP Manweb
• SPEN request for derogations
• SP Distribution IDNO model
• SP Manweb IDNO model
• Populated Indicative April 2010 CDCM model for SP Distribution
• Populated Indicative April 2010 CDCM model for SP Manweb

At the moment, we are discussing with Ofgem the details of the consequential changes required to our legacy DUoS methodology to ensure the two models working in parallel are properly documented. Once we have agreed the changes and submitted a formal modification request to Ofgem the tracked changes version will be uploaded to our webpage.

In terms of illustrative 10-11 prices, at the moment we consider that there is too much uncertainty on the outcome of the Distribution Price Control Review (DPCR5) settlement to publish a meaningful forecast. Once Ofgem has published the final proposals, we will produce further information on price movements for April 2010, identifying separately the effects of CDCM and the effects of DPCR5, and hold information workshops covering both areas.   To support our network users and stakeholders through this process we are also offering an open teleconference to discuss the impact of the CDCM in more detail. Should you which to participate please register your interest by phoning 0151 609 2359.