Mod 0428 Charge Impact

October 2012

2

Affected Supply Point Population

Population of Multi-Meter Point Supply PointsFor all National Grid Distribution Networks

Load Band Min kWh

Load Band Max kWh

All Supply Points

Multi-Meter Supply Points

Multi-Meter SP Proportion

0 73,200 10,710,435 2,819 0.0%

73,200 293,100 99,334 6,445 6.5%

293,100 732,000 22,942 3,494 15.2%

732,000 2,198,000 10,590 2,580 24.4%2,198,000 5,861,000 2,843 835 29.4%5,861,000 14,654,000 960 284 29.6%

14,654,000 29,307,000 373 84 22.5%29,307,000 58,614,000 212 56 26.4%

58,614,000 and over 162 60 37.0%Total 10,847,851 16,657 0.2%

Over 73,200 137,416 13,838 10.1%

3

Impact on Supply Point Population

Disaggregation of Multi-Meter Point Supply PointsFor all National Grid Distribution Networks

Load Band Min kWh

Load Band Max kWh

Current Treatment as Supply

Points

Treated as Single MP

Supply Points

Meter Points per Supply

Point

0 73,200 2,819 23,309 8.3

73,200 293,100 6,445 12,012 1.9

293,100 732,000 3,494 4,736 1.4

732,000 2,198,000 2,580 2,600 1.02,198,000 5,861,000 835 719 0.95,861,000 14,654,000 284 260 0.9

14,654,000 29,307,000 84 89 1.129,307,000 58,614,000 56 67 1.2

58,614,000 and over 60 58 1.0Total 16,657 43,850 2.6

Over 73,200 13,838 20,541 1.5

4

Impact on Collectable Revenue

Annual Revenue from Multi-Meter Supply Points £mFor all National Grid Distribution Networks

Charge Type

Current Treatment as Supply Points

£m

Treated as Single MP

Supply Points £m % Change

LDZ System £54.5 £59.7 9.7%Customer £4.7 £6.5 39.2%Total £59.2 £66.3 12.0%

Change in Revenue £m £7.1Current Annual Revenue, all SPs £1,589

Impact of Change on Charge Levels for All Supply PointsReduction of: -0.4%

5

Potential Interaction with LDZ System Methodology

With implementation of Mod 0428 we would expect to review derivation of current LDZ System charging functions

Apply existing methodology but with new Supply Point basis

As shown, multi-meter Supply Points are significant proportion of load bands over 732 MWh/annum

Implementation of Mod 0428 could: Reduce LDZ System charge function levels for Supply Points over 732MWh/annum

(since some loads from top bands would move to lower bands)

Have little or no impact on LDZ System two fixed charge levels below 732 MWh/annum since new Supply Points from current multi-meter SPs would be small minority of loads

This re-evaluation of LDZ System functions could reduce LDZ System charges for >732 MWh/a loads so avoiding overall charge level impact

Instead could have re-distribution of LDZ System charges within >732 MWh/a load bands, with possible 2% LDZ System charge decrease in general for these loads: Increase for current multi-meter SPs (possibly 8% [+9.7%-2%] average increase)

Decrease for current single meter SPs (possibly ~ 2% average decrease)

6

Potential Interaction with Mod 0418 – Review of LDZ Customer Charges Mod 0418 proposes that the current customer charge structure is

replaced by one with 3 flat rates

Implementation of this change would significantly reduce the level of the customer charges for I&C loads

For the loads within National Grid networks it is estimated that on the new single Meter Point per Supply Point basis and with revised customer charge structure, customer charges for current multi-meter Supply Points would be about 54% lower than at present (recovering £2.2m compared to £4.7m annually in aggregate)

The combined impact of Mod 0428 with Mod 0418 and the re-evaluation of the LDZ System charge functions for current I&C multi-metered sites is estimated to be only around +3% charge increase on average (with decreases for current single meter point I&C loads)