Common Distribution Charging Methodology
The DNOs have jointly developed a Common Distribution Charging Methodology (CDCM), for High Voltage (HV) and Low Voltage (LV) customers. The CDCM was submitted to Ofgem for approval, who consulted on it and Ofgem's governing authority announced its approval on 20 November 2009. The Methodology was incorporated into DCUSA (Distribution Connection and Use of System Agreement) and any changes to it are considered using the DCUSA Change Process. The DNOs now use the CDCM to set their distribution use of system prices. Prices are announced in an indicative form at the end of December each year and the final prices are usually confirmed by mid February.
CDCM model for April 2012 finals
CDCM model for April 2012 finals
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CDCM 100 models for April 2012
SSE:
Southern Electric Power Distribution
Scottish Hydro Electric Distribution
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CDCM Models for 2011/12 DUoS charges
UK Power Networks:
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CDCM Model 100 April 2012/13 Final charges
Northern Powergrid:
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Scotthish Power
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CDCM Model 100s April 2012/13 Final Charges
Western Power Distribution:
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CDCM Annual Review Workshop 17th May 2011
The CDCM Annual Review Workshop was held at the Institute of Physics. Please click here for a zip file containing the presentations and meeting papers.
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Generation Charging in Generation Dominated Areas
CDCM Charging Condition Report to Ofgem April 2011
ENA Covering letter to Ofgem
Report by Frontier Economics - Evaluating the case for introducing locational DUoS charges for CDCM generators
CDCM Generation Charging in Generation Dominated Areas Report
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CDCM Final Charges April 2012
Please click here for DNOs' CDCM final charges for April 2012 (last updated 16 February 2012)
CDCM Indicative Charges April 2012
Please click here for DNOs' CDCM indicative charges for April 2012 (11 January 2012)
CDCM Annual Review Pack April 2012
Please click here for DNOs' CDCM Annual Review Pack (last updated 16 February 2012).
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CDCM Final Charges April 2011
Please click here for DNOs' CDCM final charges for April 2011
CDCM Indicative Charges April 2011
Please click here for DNOs' CDCM indicative charges for April 2011
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DNOs Final Charges
Click here for final charges for 2010/2011
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Letter from Ofgem Regarding pre-2005 Distributed Generation Charging
Click here.
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Letter from Ofgem regarding CDCM conditional approvals
For Ofgem's letter regarding the meeting of the CDCM approval conditions by DNOs click here.
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Letter from Ofgem regarding a summary of DNO Derogation decisions
For Ofgem's summary letter regarding the meeting of the CDCM approval conditions by DNOs click here.
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Indicative Charges 2010/2011
DNO's indicative charges for 2010/2011 are available via the following links.
Northern Powergrid (formerly CE Electric UK)
UK Power Networks
Electricity North West
SSE Power Distribution
Scottish Power
Western Power Distribution
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Price Control Disaggregation Model (LDNO Model)
DNOs populate models to allocate costs to voltage levels to provide LDNO price reduction percentages for application to table 1037 in the CDCM. Copies of the DNOs models are available on the link below:
Price Control Disaggregation Models
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Meeting Ofgem's Conditions of Approval for the CDCM
On 2 December 2009 the CMG sent a letter to Ofgem communicating their plans to meet the conditions outlined in Ofgem's recent decision regarding the CDCM. A copy of this letter is available below:
Letter CMG to Ofgem 02/12/09
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CDCM Submission August 2009
On 25th August 2009 CE Electric, Central Networks, EDF Energy Networks, Electricity North West, SP Energy Networks, SSE Power Distribution and Western Power Distribution on behalf of the 14 entities licensed as Distribution Service Providers jointly submitted to the Authority the documents below which make up the CDCM submission package. This is in accordance with licence condition 50 of the standard distribution licence conditions under which the licensees are obliged to submit a CDCM by 1st September 2009.
Cover letter
CDCM Submission Documents
CDCM Models
In conjunction with this submission a Manual for the Draft CDCM Model has been produced:
Manual for the Draft CDCM Model
A number of DNOs have requested derogations from Ofgem to allow time for them to implement various detailed aspects of the CDCM. Copies of these requests can be found below. We expect Ofgem to decide on these requests after their final decision on the CDCM.
Derogation requests
Q&A on the CDCM Submission
1. Is this likely to get the go-head? What further hurdles need to be cleared so that changes are implemented for an April 2010 start? We assume that it will be an “all-or-nothing” scenario in that it won’t be the case that some DNOs implement CDCM and some don’t.
Ultimately the Gas and Electricity Markets Authority will decide whether the CDCM gets the go-ahead, and it is quite possible that they will place conditions on any approval they give. The DNOs can’t give any guarantees about this, but Ofgem staff have been involved throughout the project and have guided us on many aspects, so this may give some comfort that we are at least on the right track generally. In terms of the “all or nothing scenario”, there will be a single CDCM that all DNOs have to comply with. The only way in which DNOs can deviate from the CDCM will be by gaining a derogation from Ofgem on a particular aspect or aspects of the methodology. Any such derogations are likely to be temporary in nature.
2. In the submission document, Appendix C provides indicative tariffs that could be implemented. Would it be totally erroneous to use these figures as forecasts of DUoS charges for next April? We appreciate that ENA cannot be held responsible for changes to indicated tariffs – we're just looking for general indications.
‘Appendix C’ is based on 2009/10, and intended to allow comparisons between current tariffs and those produced by the CDCM. It would be risky to use this as even a very rough guide to next year’s prices, especially with the outcome of the price control review – which impacts in April 2010 – yet to be finalised. DNOs will announce Indicative tariffs in December, in the normal way, by which time the price control final proposals will have been published.
3. Are there any plans for communicating the changes that will take place as a result of the CDCM?
DNOs have been putting together comprehensive communication plans for their customers and main stakeholders. These include written communications as well as workshops and teleconferences, in accordance with DNO's individual plans. Information can be obtained from each DNO's webpage or alternatively, the DNO representative in the CMG can be contacted via the CDCM contact email address: CDCM@energynetworks.org
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Workstream 2 LDNO Billing Consultation August 2009
Cover letter
LDNO Billing Consultation August 2009
Summary of Responses to LDNO Billing Consultation
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Common Distribution Charging Methodology - DNO SSC TPR Decoding for Unit Rates
DNO CDCM SSC TPR Decoding for Unit Rates
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Structure of Charges Project Archive
CDCM Information (5.45 MB zip file)
Workstream materials (18.23 MB zip file)
2010/2011 CDCM Models following Final Proposals (5.8 Mb zip file)
To contact any of the working groups or to submit comments to the discussion papers, please write to: CDCM@energynetworks.org. Please state clearly, in the subject of your email, which workstream it is addressed to.
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