1. January 24, 2016 energynetworks.org 1 The SoC Project A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION PRESENTED BY ANDREW NEVES – DCMF CHAIR Implementing a common methodology

2. January 24, 2016 energynetworks.org 2 Overview Collective Licence Modification Proposal Issued DNOs have until 29 th October to object Notwithstanding this, aggressive project timescales demand total commitment A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

3. January 24, 2016 energynetworks.org 3 Requirements for success Resources (DNOs, consultants, stakeholders, Ofgem) Cooperation, commitment and pragmatism Early clarification of issues registered Quick ‘minded to’ guidance from Ofgem when needed Milestones for deliverables must be met A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

4. January 24, 2016 energynetworks.org 4 DNO joint work to date DNOs agreed to start joint working without prejudice to their decisions on CLM DNOs developed an outline project structure DNOs started a register of issues requiring clarification A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

5. January 24, 2016 energynetworks.org 5 Seven DNO groups working together A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION

6. Ofgem DCMF and Stakeholder Consultation Consultants Outline project structure – methodology

7. January 24, 2016 energynetworks.org 7 CMIWG structure Chair (DNO appointment) Project Manager DNOs Ofgem Stakeholder representatives (one representative each for: generators, suppliers, IDNOs, Consumer Choice, large users) A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

8. January 24, 2016 energynetworks.org 8 Methodology work streams EHV Load Flow and LRIC Work-stream Definitions and clarifications (power flow modelling itself not part of common approach) Feed into CMIWG and into consultants’ development of the template Engineering and commercial representatives from DNOs, with stakeholder engagement as needed DRM Yardstick Model Work-stream Definitions and clarifications and best practice Feed into CMIWG and into consultants’ development of the template Commercial representatives from DNOs, with stakeholder engagement as needed Tariff structures and application Seek commonality where feasible Feed into the CMIWG and into LRIC and DRM work streams Commercial representatives from DNOs, with stakeholder engagement as needed A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

9. ENA Regulation Group Governance Working Group (GWG) Ofgem DCMF and Stakeholder Consultation Outline project structure – governance

10. January 24, 2016 energynetworks.org 10 GWG structure Chair (DNO appointment) DNOs Ofgem Stakeholder representatives (one representative each for: generators, suppliers, IDNOs, Consumer Choice, large users) A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

11. January 24, 2016 energynetworks.org 11 Next steps DNOs meeting with Ofgem to discuss implementation later today DNOs identifying CMIWG Chair and Project Manager DNOs firming up work-stream structures and personnel Ofgem appointing consultant A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

12. January 24, 2016 energynetworks.org 12 The SoC Project A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION PRESENTED BY ANDREW NEVES – DCMFCHAIR Implementing a common methodology