The Third Pump

by Franck Latrémolière on 2 August 2014

999 call. The Cat and Fiddle village pub. Two bodies in the function room. Llewelyn and Frida, the pub's owners. Dave, the bar manager, is caught running away from the village. He denies murder.

What has this got to do with Ofgem's RIIO–ED1 electricity distribution price control and the EDCM distribution charging methodologies?

Find out by reading the transcript (8 pages, PDF) of the examination of the police detective inspector by the prosecution in Dave's trial.

Are you a clever economist who believes in forward-looking price signals, or who thinks that Ofgem’s RIIO price control model is good? Or do you work for Ofgem or for one of the electricity distribution network operators who approves of RIIO–ED1 or who believes that the FCP or LRIC elements of the EDCM for demand might be appropriate? There is a challenge for you on the last page.

The Third Pump transcript (8 pages, PDF).

Acronym cribsheet
Ofgem is the Gas and Electricity Markets Authority, a UK Government department.
RIIO–ED1 is Ofgem's price control for electricity distribution from 2015.
EDCM refers to the Extra High Voltage Distribution Charging Methodologies, described in schedules 17 and 18 of DCUSA v6.2 web edition (899 pages, PDF).
FCP refers to Forward Cost Pricing, a method used within the EDCM charging methodologies and described in schedule 17.
LRIC refers to Long Run Incremental Cost, a method used within the EDCM charging methodologies and described in schedule 18.
Important notices about acronym clashes
There is no known relationship between the EDCM charging methodologies, EDCM Precision Wire Erosion Ltd, EDCM Building Services Consulting Engineers Ltd, and the Every Disabled Child Matters (EDCM) campaign.
LRIC within the EDCM charging methodologies has no close connection with the LRIC or LRAIC methods used for pricing in telecommunications networks.

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