Pricing and Margins Manager National Grid Distribution Steve Armstrong Pricing and Margins Manager National Grid Distribution

Indicative Transportation Charges for Oct 2008

Indicative Transportation Charges for Oct 2008

Mod 186 – East of England

Mod 186 – East of England commentary

Mod 186 - London

Mod 186 – North West

Mod 186 – West Midlands

East of England – Mains and Services Replacement

London DN – Mains and Services Replacement

Potential Changes to Distribution Charges Balance of LDZ System and Customer charges Current approximate 70:30 split based on historical national analysis of costs Appropriate to update to reflect network costs Possible move to network-specific balance Analysis being undertaken by each network Not a methodology change – however Pricing Discussion paper highlighting impacts will be published Paper likely Summer 2008 Implementation targeted for April 2009

Potential Changes to Distribution Charges Update of Data Underlying LDZ System Charges Current national data includes: Probability of connection to pressure tier by load band Relative costs of different tiers Move to DN-specific data Utilising new samples of where loads are typically connected Dependent upon results may be simple update of current functions, with new parameters, or more fundamental change of function Update direct load and CSEP functions Expect to consult later this year Implementation targeted for April 2009

Potential Changes to Distribution Charges Update of Optional LDZ Charge Typically suitable for large loads close to NTS Based on alternative cost of laying stand-alone pipeline to NTS Not been updated since 2000 Appropriate to reflect latest cost estimates – these may vary by network Expect to consult later this year Implementation targeted for April 2009