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Issue 861 | DCMDG

Issue 861 | DCMDG

Distribution Charging Methodologies Development Group 6 June 2019 Robert Longden Headlines No new change proposals were raised Updates on the progress of two change proposals, DCP313 and DCP268 were provided Ofgem published its RIIO-2 sector specific methodology decision on 24 May. In the final proposals, the allowed return on equity rose from 4.0% to 4.3% and return on debt rose from 1.7% to 1.9% For the Targeted Charging Review the current preferred implementation date for embedded benefits reforms is now April 2021. The lead option for revised residual charging arrangements implementation is now April 2023 All access reforms will now be synchronised and implemented in April 2023. The first access reform working paper will be published at the end of July, setting out high level options and an initial assessment. Stakeholders are encouraged to respond on the issues raised and emerging direction of travel. The next Challenge Group meeting will be on 24 June The final Balancing Services Use of System (BSUoS) Charges taskforce report was published on 31 May. It concluded that the current BSUoS charge does not provide any useful forward-looking signal which influence user behaviour to improve the economic and efficient operation of the market There will be no DCMDG meeting in July 1 Background The Distribution Charging Methodologies Development Group (DCMDG) incorporates the Distribution Charging Methodologies Forum, Methodologies Issues Group and Distribution Charging Managers Group into one monthly meeting. This group sits under the Distribution, Connection and Use of System Agreement (DCUSA) and is managed by Electralink, which is the secretariat for DCUSA.  The purpose of the DCMDG ...

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