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EHV charging

Considerations for EHV charges for April 2010 María Isabel Liendo SP Energy Networks DCMF, 04 June 2009. EHV charging. Four options for EHV charges for 2010: Current DRM-type model for all EHV customers

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EHV charging

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  1. Considerations for EHV charges for April 2010María Isabel LiendoSP Energy NetworksDCMF, 04 June 2009

  2. EHV charging • Four options for EHV charges for 2010: • Current DRM-type model for all EHV customers • Current DRM-type model for EHV demand customers and average CDCM charges for generation • Use CDCM end-to-end (for all customers) • Use longer-term EHV charging method

  3. Option 1 - Current model for all EHV customers • Pros: • No modification proposal other than CDCM needed (? – see comments) • Potentially less price disturbances for EHV customers • Cons: • Two methodologies (and models) co-existing for one year, confusing to customers • Existing models treat DG allowed revenue as a separate “pot”, no clear way of incorporating the decision of one revenue pot • Comments: • Price disturbances are expected in 2010 regardless, DPCR5 settlement • Would a modification still be needed to “integrate” the CDCM and the exiting methodology? • A modification proposal could still be needed to deal with the DG issue

  4. Option 2 - Current model for EHV demand and CDCM for generation • Pros: • Potentially less price disturbances for EHV demand customers • Able to deal with DG customers and merged pots of allowed revenue • Cons: • Two methodologies (and models) co-existing for one year, confusing to customers • Two modifications needed. One (EHV) governed by the existing SC13 and one (HV/LV) governed by the new SC50 – how does this work? • Comments: • Price disturbances are expected in 2010 regardless, DPCR5 settlement

  5. Option 3 - CDCM end-to-end • Pros: • Only one methodology applied, consistency • Able to deal with DG customers and merged pots of allowed revenue • Cons: • There could be price disturbances to EHV customers • Comments: • Governance is not clear for a scenario of one modification proposal being governed by two standard conditions • Ofgem has indicated to DNOs that they will need a “clear justification for two step changes” • If moving to a “nodal” locational approach from 2011, frequent disturbances might be common

  6. Option 4 - Use longer-term EHV charging method • Ofgem’s LRIC guidance has been published • Not the case for FCP, but March decision document mentioned a version” of FCP to be implemented – this does not exist yet • This option is unlikely to be realistic by 2010

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