November 2009 meeting discusses DPCR5, CDCM, Project Discovery and new supplier licence conditions

Another well attended meeting, which allowed members to discuss the impacts of the changes to distribution network charges as a result of the common distribution charging methodology (CDCM) and the fifth distribution price control review (DPCR5) work streams. Many have found it difficult to develop and understand the impacts on contract prices for their customers.

This month’s external visitor was Ofgem's Head of Energy Economics Kersti Berge. She provided the group with a summary of the regulators’ recently published Project Discovery work. Members were encouraged to provide responses should they have any comments on the assumptions that underpin the four scenarios for 2020.

Also discussed was the introduction of new supplier licence conditions, which have been introduced as a result of the regulator’s supply probe. These will require, among other things, all suppliers to provide clearer information to consumers on the terms and conditions of their contracts. This discussion led onto a debate on how to improve the customer transfer objections process (particularly in the electricity market) to enable incoming suppliers to know more about the reasons why the objection was implemented in the first place.

Other areas of discussion included:

• the DECC grid access consultation, which aims to introduce a new regime by July 2010;
• the recently announced changes to the carbon reduction commitment and publication of greenhouse gas reporting guidelines;
• BSC Panel and CUSC Panel update; and
• UNC270 modification proposal to allow data from gas smart meters to be used in settlement.

The next meeting of the forum will be held on 1 December. For queries and comments, please contact us.