Electricity commercial policy consultations

SSE Power Distribution is committed to communication and engagement with customers and stakeholders who are affected by developments in electricity distribution and transmission. From time to time, we will publish information of interest to our customers and stakeholders, including consultation documents, on current matters and developing issues in distribution and transmission.

Ofgem consultation on use of system charging for pre-2005 distributed generation
On 21 July 2010 Ofgem published a consultation document about distribution use of system charging and pre-2005 distributed generation (pre-2005 DG). The consultation seeks input from all affected parties, including the operators of pre-2005 DG. Whilst the consultation covers some issues which are specific to EHV connected pre-2005 DG, it also covers important issues which apply to all pre-2005 plant.

You can download the consultation from Ofgem's website.

Please note: responses to one section of the consultation must be made by 18 August 2010, with responses to the remaining sections by 1 September 2010.

Update on use of system charging - EHV connected distributed generation

At the request of Ofgem, the proposals submitted to Ofgem by SSE Power Distribution on 28 June 2010 (see below) have been formally withdrawn and the proposed interim charging arrangements relating to EHV connected distributed generation will therefore not come into effect. The accompanying indicative use of system charges have also been withdrawn.

The notice of withdrawal submitted to Ofgem can be viewed using the link below:

Withdrawal of Modification Proposal Letter

Further information updates will be published in this section of our website as charging arrangements develop.

EDCM - stakeholder conferences

SSE Power Distribution hosted two conferences (12 July 2010 in Reading and 13 July 2010 in Perth) to update our stakeholders on the Extra High Voltage Distribution Charging Methodology (EDCM) which is due to be implemented on 1 April 2011.

The presentations and supporting information may be viewed using the links below:

Reading Presentation
Perth Presentation
Comparison of options - illustrative charges

Use of system charging - EHV connected distributed generation

On 28 June 2010, SSE Power Distribution submitted proposals to Ofgem relating to use of system charges for the export connections of distributed generation (“DG”) which is connected at extra high voltage (“EHV”). These proposals are for interim use of system charging arrangements to apply between 1 October 2010 and 31 March 2011. From 1 April 2011, the EDCM (see below) is expected to be implemented. Unless these proposals are vetoed by Ofgem, they would result in use of system charges being introduced for the first time in relation to the export connections of longer-established DG sites and amended charges in relation to more recently connected DG sites.

The Modification Proposal can be downloaded using the following link:
SSE Power Distribution Modification Proposal SSEPD/10/001

Energy Networks Association consultation on EDCM

The Energy Networks Association (ENA) has issued a consultation which seeks views on options and issues that have been identified for the implementation of a common Extra High Voltage Distribution Charging Methodology (EDCM). The EDCM is due to be implemented on 1 April 2011 and will impact on demand and generation customers connected at Extra High Voltages. This consultation document together with additional supporting information is available from the ENA website using the link below:

EDCM Project Documentation
Responses to this ENA consultation should be sent by email to EDCM@energynetworks.org by 16 July 2010.

EDCM conferences in Reading and Perth - July 2010

SSE Power Distribution invites interested parties to attend a conference on the Extra High Voltage Distribution Charging Methodology (EDCM), which is due to be implemented on 1 April 2011. The conferences are being held on 12 July 2010 in Reading and 13 July 2010 in Perth.

These conferences will provide an opportunity to gain a greater understanding of the forthcoming methodology changes and their likely effect on Extra High Voltage (EHV) use of system charges. For electricity suppliers and EHV customers (demand and generation), these can be significant costs so we encourage all interested parties to come to one of the conferences.
If you wish to attend, please e-mail Angus Rae (angus.rae@sse.com) to register a place and get details of the venues and an agenda. Please register by 1 July.

Future use of system charges for EHV-connected customers - 16 March 2010

SSE Power Distribution has written to all customers (demand and generation) who are connected at Extra High Voltage (EHV) to advise of a forthcoming programme of work, to be jointly undertaken by the GB Distribution Network Operators, to develop a new methodology for calculating EHV use of system charges. The new charging methodology is due to be implemented on 1 April 2011, following a period of consultation and receipt of Ofgem non-veto. To view or download the letter, please click on the links below:

SEPD Letter to EHV Customers - 16/03/2010
SHEPD Letter to EHV Customers - 16/03/2010

Final April 2010 use of system charges and information update for generators

SSE Power Distribution sent a letter to operators of exporting generation plant to let them know about the final April 2010 use of system charges and their application to generators connected before April 2005. To view or download this letter, please click on the links below:

SEPD Letter to Embedded Generation Operators - 02/03/2010
SHEPD Letter to Embedded Generation Operators - 02/03/2010

You can view and download the use of system charges from the Charging Statements page.

Supplier and stakeholder use of system teleconference - 25 February 2010

A further supplier and stakeholder teleconference was hosted by SSE Power Distribution on 25 February 2010 to discuss the final April 2010 use of system tariffs. You can view or download the information pack issued to conference participants and the notes of the teleconference by following the links below:

Teleconference Information Pack
Stakeholder Teleconference Information Pack

Teleconference Notes
Notes of teleconference

Proposal to modify use of system charging methodologies - 18 February 2010

SSE Power Distribution made a formal proposal to Ofgem on 18 February 2010 to modify the use of system charging methodologies of Southern Electric Power Distribution plc and Scottish Hydro Electric Power Distribution plc to reflect the implementation of the Common Distribution Charging Methodology (CDCM). To view or download the modification proposal documents, please click on the relevant link below:

SSE Power Distribution Letter to Ofgem
Modification Proposal
SEPD Use of System Methodology (Modification Mark Up)
SHEPD Use of System Methodology (Modification Mark Up)

On 19 February 2010, Ofgem issued a 'non-veto' decision letter in relation to the modification proposals.

Supplier and stakeholder use of system teleconference - 26 January 2010A stakeholder teleconference was hosted by SSE Power Distribution on 26 January 2010 to discuss the following use of system cost information. If you wish to access the information which was circulated to the participants in the teleconference or to read the notes of the teleconference, please click the relevant link below:

Teleconference Information Pack
Stakeholder Teleconference Information Pack

Teleconference Notes
Notes of teleconference

Use of system charges - updated information for distribution connected generatorsTo provide further information to the operators of exporting generation plant of indicative use of system charges and their application to generators connected before April 2005, SSE Power Distribution issued an advisory letter on 11 January 2010. To view or download this letter, please click on the links below:

SEPD Letter to Embedded Generation Operators - 11/01/2010
SHEPD Letter to Embedded Generation Operators - 11/01/2010

SSE Power Distribution wishes to advise the operators of exporting generation plant which is connected to either the Southern Electric Power Distribution plc (SEPD) network or the Scottish Hydro Electric Power Distribution plc (SHEPD) network of important developments in relation to use of system charges. These developments may financially affect the operators of such plant and/or the commercial terms and arrangements between generators and their associated electricity suppliers.

To read or download a letter to operators of such plant, please click the link below:

SEPD Letter to Embedded Generation Operators - 16/12/09
SHEPD Letter to Embedded Generation Operators - 16/12/09

On 16 December 2009, SSE Power Distribution provided an update information pack to the participants in the Stakeholder Use of System Teleconference which took place on 30 November 2009. Choose the relevant link below if you wish to access these documents:

Update information pack to stakeholders
SSEPD Stakeholder Letter - 16/12/09
SSEPD Illustrative Interim 2010-11 EHV Demand & Generation Tariffs
SEPD CDCM 2010-11 (ENA) - 11/12/09
SHEPD CDCM 2010-11 (ENA) - 11/12/09

Stakeholder use of system teleconference - 30 November 2009

SSE Power Distribution is committed to communication and engagement with stakeholders who are affected by developments in electricity distribution and transmission. A stakeholder teleconference was hosted by SSE Power Distribution on 30 November 2009 to discuss the following current use of system matters:

• Common Distribution Charging Methodology (CDCM)
• Distribution Price Control (DPCR5)
• Extra High Voltage (EHV) Use of System Charging
• Cost information (as DCUSA Clause 35A)
• BSCP128 (distribution losses)

Invitations to participate in the teleconference were extended to electricity suppliers, licensed distribution network operators and a number of other parties with interests in electricity distribution developments. If you wish to access the documents which were circulated to the participants in the teleconference or to read the notes of the teleconference, please click the relevant link below:

Information pack to stakeholders
SSEPD Stakeholder Letter - 26/11/09
SSEPD Illustrative Tariff Changes
SSEPD Illustrative 2010-11 EHV Distribution Use of System Charges
SEPD Illustrative 2010/11 DUoS, G-DUoS & LDNO Tariffs
SHEPD Illustrative 2010/11 DUoS, G-DUoS & LDNO Tariffs
SEPD Illustrative Time Bands
SHEPD Illustrative Time Bands
SEPD Cost Information
SHEPD Cost Information
SSEPD K Recovery Factor - 31/10/09

Teleconference registered participants
Stakeholder Teleconference Registered Participants

Teleconference notes
Notes of teleconference

Further stakeholder engagement events will be held periodically. If you wish to be notified of future events, please contact Angus Rae, SSE Power Distribution Commercial Policy Manager to register your interest (angus.rae@Scottish-southern.co.uk).

On 25 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 the documents below which make up the CDCM submission package to Ofgem. 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 1 September 2009.

The SSE Power Distribution submission included in the CDCM submission package (on behalf of Southern Electric Power Distribution plc and Scottish Hydro Electric Power Distribution plc who are Distribution Service Providers) is available in the files and documents below:

SEPD CDCM Model
SHEPD CDCM Model
Report on the Draft CDCM - August 2009
Appendix A – Summary of Responses
Appendix B – CDCM Methodology
Appendix C – Illustrative Charges and Time Bands
Appendix D – Significant Tariff Movements
Appendix E – Areas of Risk
DNO Letters of Support

The full CDCM submission package (which includes all the companies' models), and other related information on CDCM, is available on the Energy Networks Association website.

Structure of Charges Project - archive

SSE Power Distribution, Scottish Power Energy Networks and Central Networks agreed to work together, as a group known as 'G3', to create a new methodology for Use of System Charges, as part of the long term charging arrangement project.

Reports on G3 methodology

Reckon report on G3 methodology
Frontier Economics report on G3 methodology

G3 Consultation - May 2007

Consultation Document
Summary of responses to G3 consultation
Response from Centrica
Response from CoCoal
Response from EnerG
Response from Energywatch
Response from EON supply
Response from Npower
Response from Ralph Turvey
Response from Renewable Energy Association
Response from SSE supply
Response from United Utilities (now Electricity North West)
Response from Western Power Distribution

G3 workshop - East Midlands 13 July 2007

Workshop notes
Workshop presentations

Update on Structure of Charges Consultation - January 2009

Statutory Objection Notice
Letter to Ofgem August 2008
Letter to Ofgem May 2008
Letter to Ofgem May 2007
Paper on Existing Distribution Generation Connections
Bath University benefit analysis work