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Generation Dominated Areas(GDA)

Generation Dominated Areas(GDA)

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Generation Dominated Areas(GDA)

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  1. Generation Dominated Areas(GDA) Mo Sukumaran SSEPD (on behalf of DNOs) DCMF – 2 June 2011

  2. GDA - Progress Update Ofgem placed a condition on DNOs to review CDCM regarding “Generation charging in generation dominated areas” DNOs delivered their report in Sep 2010 which recommended further studies Ofgem’s December 2010 decision document set out their issues and requirements DNOs appointed independent consultant, Frontier Economics, to review the issues and report DNOs submitted an ‘Interim Report’ to Ofgem on 1 April 2011

  3. GDA – Interim Report • Frontier Economics provided three conclusions to their interim report: • Conclusion 1- There is a strong case against introducing a complex geographically locational charging regime for HV and LV generators • Conclusion 2 - There may be a case for introducing a simpler location based charging regime for HV generators • Conclusion 3 - Careful consideration should also be given to any advantages and disadvantages that are more difficult to quantify

  4. GDA - Impact on CDCM …at this time • No requirement for ‘locational’ charges • No requirement for any changes to LV • Some CDCM changes currently being progressed impact generation • MIG001 – Commonality of 500MW model • MIG004 – Generation scaling • MIG013 – Remove single rate tariff for generators • GDA discussed at the CDCM Annual Review workshop on 17 May 2011

  5. GDA - Next steps • Final Report expected in June and to propose that on balance there is no requirement to implement urgent change • This also allows for EDCM approval and some conclusion of CDCM work that is in progress • Report expected to suggest timescale for implementing initial GDA charging regime in April 2013 • DNOs will review initial GDA charging regime work through MIG in 2011 and bring forward any change proposals to CDCM via DCUSA in 2012