1. 11 December 2008 energynetworks.org 1 PRESENTED BY GEORGE MORAN, CENTRAL NETWORKS, ON BEHALF OF WORKSTREAM 3 Fixed Time Period DUoS Charging 11 December 2008

2. December 11, 2008 energynetworks.org 2 Issues Facing Tariff Application Most DNOs utilise the time pattern regime (TPR) of supply tariff for DUoS time of day (year) charging New supplier tariff requests involving a variation in TPR require DNOs to “allow” the new tariff (by including a valid combination in MDD) Result is an administratively cumbersome process that may hinder suppliers use of innovative tariffs Furthermore, cost reflectivity is reduced when there is a misalignment of TPR periods and DUoS tariff calculation

3. December 11, 2008 energynetworks.org 3 Common Tariff Proposal DUoS tariff structure will have “fixed” time periods for the application of the different charges. This means that the time periods for DUoS billing will not depend on the supply tariff i.e. they will be ‘de-linked’ from the TPR.

4. December 11, 2008 energynetworks.org 4 Benefits Improved cost reflectivity and stronger cost signals; Enables time periods to be network driven; ‘De-linking’ with Suppliers legacy tariff structure; Improved billing process by eliminating the need for valid set of combinations; Facilitates competition through common tariff across DNOs that do not align with legacy Supply structures; Supports further enhancement in market development;

5. December 11, 2008 energynetworks.org 5 Implementation Impacts Billing systems for NHH (supercustomer): 2 DNOs currently charge on fixed time periods for DUoS; 2 DNOs billing systems could adopt a default billing module to facilitate fixed time periods with minimal costs; 3 DNOs would require IT change request which will have cost implications and may affect April 2010 implementation; There will be one off set up requirements for all stakeholders however Suppliers are currently validating fixed time periods for 2 DNOs.

6. December 11, 2008 energynetworks.org 6 Views invited: The proposed approach of ‘de-linking’ the DUoS tariffs from the Supply tariffs in terms of the Time Pattern Regime; The DNO’s initial analysis on benefits and impacts of this proposal; Impacts of this proposal on Suppliers’ billing systems and verification processes; Impact of this proposal on DNO’s billing systems; Impact on wider industry processes (MDD management, BSC, etc).