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DNPC03 Report LDZ System Charges Capacity/Commodity Split and Interruptible Discounts

DNPC03 Report LDZ System Charges Capacity/Commodity Split and Interruptible Discounts. Questions for Consultation. 1. Should the Charging Methodology be changed from 50/50 capacity/commodity split to 95/5 2. Should interruptible supply points pay 47.37% of the increased capacity charges

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DNPC03 Report LDZ System Charges Capacity/Commodity Split and Interruptible Discounts

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  1. DNPC03 Report LDZ System Charges Capacity/Commodity Split and Interruptible Discounts

  2. Questions for Consultation • 1. Should the Charging Methodology be changed from 50/50 capacity/commodity split to 95/5 • 2. Should interruptible supply points pay 47.37% of the increased capacity charges • 3. Should the change be made with effect from 1 April 2008 or 1 October 2008

  3. 1. Main Points Raised • Not enough information provided • Treatment of overhead costs • Would encourage introduction of Standing Charges • Runs counter to energy efficiency incentives • AQ Review process may need revised • Retro-fit modelling

  4. 2. Main Points Raised • Discriminatory effects • SOQ data • Is the 47.37% cost reflective

  5. 2. Main Points Raised • Derivation of the 47.37%

  6. 3. Main Points Raised • Align implementation date with end of the transitional arrangements, October 2011 • Impact of October 2008 implementation on price changes

  7. Impact of Oct 2008 implementation on price changes

  8. Final Proposals • The Charging Methodology should be changed so that capacity element the LDZ system charges is set to recover 95% of the revenue from the LDZ system charges and the commodity element set to recover 5%. • Interruptible supply points should pay 47.37% of the increased LDZ capacity charge • The change should be made with effect from 1 October 2008

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