4 June 2009 energynetworks.org 1 Common Methodology Group Work PRESENTED BY OLIVER DAY ON BEHALF OF WORKSTREAM 3 Workstream 3 Tariff Application

4 June 2009 energynetworks.org Progress to date Progress since last DCMF Core tariff list Consultation completed Common tariff list compiled De-linking proposal Progression parked DNO billing system requirements Tariff application paper energynetworks.org 2

4 June 2009 energynetworks.org Core tariff list energynetworks.org 3 Consultation 13 responses 8 non network operators (suppliers, associations & Ofgem) 5 network operators (DNOs & IDNOs) General consensus towards option 1 Least impact to systems Too early to evaluate options 2 or 3 due to de-linking De-linking requires more consideration and wider debate Support for de-linking WS3 debated and chose option 1 WS3 amended option 1 tariffs to account for feedback

4 June 2009 energynetworks.org Core tariff list energynetworks.org 4 Three time bands – Red, Amber and Green DNOs set times to suit individual network cost drivers Time of day basis Half-hourly metered demand tariffs Point of connection Unit rate time bands Other chargesTariff Name LVThreeFixed, Capacity and Reactive ChargesLV HH Metered LV SubThreeFixed, Capacity and Reactive ChargesLV Sub HH Metered HVThreeFixed, Capacity and Reactive ChargesHV HH Metered HV SubThreeFixed, Capacity and Reactive ChargesHV Sub HH Metered LV UMS ThreeUnit Charge OnlyLV Pseudo HH Metered

4 June 2009 energynetworks.org Core tariff list energynetworks.org 5 Non-half-hourly metered demand tariffs Point of connection Profile class Unit rate time bands Other charges Tariff Name LV1OneFixed Charge Domestic Unrestricted LV2TwoFixed Charge Domestic Two Rate LV2OneFixed Charge Domestic Off Peak LV3OneFixed Charge Small Non Domestic Unrestricted LV4TwoFixed Charge Small Non Domestic Two Rate LV4OneFixed Charge Small Non Domestic Off Peak LV5 to 8 Two Fixed Charge LV Medium Non-Domestic LV Sub5 to 8 Two Fixed Charge LV Sub Medium Non-Domestic HV5 to 8TwoFixed Charge HV Medium Non-Domestic* * This tariff will be closed to new customers and all new HV connections will be required to be half-hourly metered LV UMS1 & 8 OneUnit Charge Only NHH UMS

4 June 2009 energynetworks.org De-linking proposal Still supported as an enduring approach Identified that much more consideration and design required to establish best common method to engage all of industry Not practical to implement by April 2010 Progression parked until Sept 2009 energynetworks.org 6

4 June 2009 energynetworks.org Tariff Application Paper Document completed Common tariffs Calculations Application of charges Consultation as part of CDCM 12 June 2009 energynetworks.org 7

4 June 2009 energynetworks.org Next Steps… Circulate conclusion to consultation on core tariff list Attend to any CDCM application issues Further WS3 work suspended till later in year De-linking New products Long-term tariff scenarios Long-term fixed pricing arrangements energynetworks.org 8