Ofgem prohibits ENW's structure of charges proposals

Ofgem decision (8 pages, PDF) to prohibit ENW's proposals for changes to its methods for setting the structure of its electricity distribution charges. The responses to Ofgem's consultation were published in October.

Ofgem states that it has “had to balance the improvements ... against the areas where we consider the proposal to be worse than the methodology ENW currently has in place”. It seems that, according to Ofgem, the areas in which ENW's proposal was considered not to better achieve the objectives in the licence are:

Ofgem also complains of alleged difficulties in using the documents supplied by ENW. It claims that the description of the method for IDNO charging was insufficient “to fully understand the effects”, that the source of some parameters proposed by ENW was not “adequately justified” in its report, that the description of the impact of changes to the DRM model was lacking “a clear explanation of each of these impacts”, and that the reasons for some proposed changes are “not sufficiently explained”. (It seems that the proposal would have led to large increases in charges for some users.)

Ofgem identifies some elements of ENW's proposals that it likes, and asks for individual parts to be re-submitted as stand-alone modifications.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem.

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