Generation Dominated Areas

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