DCP 128 and DCP 129 (control of Method M models)

by Franck Latrémolière

Update 25 April 2013: Ofgem has approved these change proposals. There is no indication that much checking has been done.

27 March 2013 article (based on 27 February 2013 article)

DCP 128 and DCP 129 would replace the existing DNO-specific workbooks for Method M (calculation of LDNO discount factors) with DCUSA-issued workbooks.

The workbooks presented to the February 2013 DCUSA panel meeting for these DCPs do not seem to work, because formulas related to 2007/2008 allowed revenue and incentives and to non-load-related capital expenditure are missing. I think that, in order to reconcile the discounts published by DNOs in recent pricing notices with other published information about Method M, it is necessary to add DNO-specific (not common) formulas in the areas where the common template has missing formulas.

Update: apparently there was an administrative error and the wrong model was included in the change report; I have been sent a model which gives matching results for ENW, SPEN and WPD areas.

I have tried to reconcile published Method M input data with the discounts that each DNO has used in December 2012 indicative price notices. The results are embedded in the various datasets available with the model rules "Method M after DCP095 and DCP096 (from 1 April 2012)" from http://dcmf.co.uk/models/.

It will be interesting to see how much checking for manifest errors and inconsistencies Ofgem does before making its decision on these change proposals.