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Issue 429 | DCP123

Issue 429 | DCP123

Josephine Lord Josephine Lord Consultant

Ofgem decisionDCP123 Revenue Matching Methodology Change 19 August 2014 This proposal was raised by Western Power Distribution (WPD) and sought to change the way revenue matching, or scaling, is achieved within the Common Distribution Charging Methodology (CDCM). This process matches the charges calculated under the CDCM to the allowed revenue to be collected by the distribution network operators (DNOs). Currently this is achieved by a fixed adder approach that has the effect of raising only the day/red unit prices. The workgroup developed three options for changing this process, as it considered the current method distorts economic signals and produces excessive charges ...

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