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Recap on Generation Charging in Dominated Areas: Progress and Future Directions

This recap highlights the developments and ongoing efforts by Distribution Network Operators (DNOs) regarding generation charging in generation-dominated areas. Following the fifth condition set by Ofgem, DNOs submitted a report in September 2010 and appointed Frontier Economics for a detailed study on tariff options. Meetings were held to address concerns and finalize the interim report due by April 2011. The ongoing analysis focuses on locational charging options and costs, with collaborative efforts continuing between DNOs and Frontier.

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Recap on Generation Charging in Dominated Areas: Progress and Future Directions

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  1. Generation Dominated Areas Oliver Day 1 | Energy Networks Association - DCMF

  2. Recap 2 | Energy Networks Association – DCMF • Fifth condition on CDCM regarding “Generation charging in generation dominated areas” to be completed by September 2010 • To meet fifth condition DNOs submitted “Generation charging in generation dominated areas” report to Ofgem on 1 September 2010 • DNOs proposed to undertake a study on the issue of tariffs in generation dominated areas • Ofgem published decision on “Generation charging in generation dominated areas” condition on 14 December 2010 • Further requirements including an interim report April 2011

  3. Meeting the extended condition 3 | Energy Networks Association – DCMF • DNOs appointed Frontier Economics to undertake the study on the issue of tariffs in generation dominated areas • Work started on 10 January 2011 • Initial meeting between DNOs and Frontier held on 13 January • Frontier and representatives from DNOs met with Ofgem on 25 January • Frontier currently working on two aspects • extending the analysis undertaken by DNOs to address concerns regarding the identification of generation dominated areas • Identify different locational charging options and costs

  4. Next steps 4 | Energy Networks Association – DCMF • DNOs currently completing two information surveys • Locational charging options and costs • Thermal reinforcement costs • Frontier and DNOs meeting 17 February to discuss extended analysis results and progress with information surveys • Completion of analysis for interim report • Interim report deadline – 1 April 2011 • Setting out progress to date and likely direction • Timescales for completing any further analysis • Timescales for developing charging arrangements

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