ENA view on structure of electricity distribution charges

Energy Networks Association report (51 pages, PDF) on the structure of electricity distribution charges. The report proposes an approach to setting charges based on a distribution reinforcement cost model. Operations, maintenance, renewals and various overhead costs would be allocated alongside these long-run marginal costs using a “common pragmatic approach”.

An attempt would be made to minimise the difference between revenues from charges estimated using this process and the overall revenues allowed under the distribution price control. Any remaining difference would be recovered on a uniform p/kWh basis although “other approaches to revenue reconciliation can also be accommodated”.

This report follows an industry consultation process.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity.

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