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STATEMENT OF METHODOLOGY AND CHARGES FOR USE OF SYSTEM
Final Statement
Effective from 1st October 2015
VERSION CONTROL
Version Number / Revision Details / Date1.0 / October 2015 Draft / 31/07/2015
1.1 / October Final / 01/10/2015
Table of Contents
1.Introduction
2.Application and Determination of Charges
3.Schedule of Charges for Use of the Distribution System
4.Schedule of Line Loss Factors
5.Notes for Designated EHV Properties
6.Electricity Distribution Rebates
7.Accounting and Administration Services
8.Charges for Electrical Plant Provided Ancillary to the Grant of Use of System
Appendix 1 – Glossary
Appendix 2 - Guidance notes
1.Introduction
1.1. This document comprises a statement of use of system charging methodology and a statement of use of system charges for Harlaxton Energy Networks Limited (hereinafter “we”). The statement of use of system charging methodology and the form of the statement of use of system charges are subject to approval by the Gas and Electricity Markets Authority (Ofgem).
1.2. The statement of use of system charging methodology specifies the methods that we use in order to determine the charges included in its statement of distribution use of system charges. It has been prepared pursuant to Standard Licence Condition 13 of our Electricity Distribution Licence.
1.3. Thestatement of use of system charges tells you about our charges and the reasons behind them. It has been prepared pursuant to Standard Licence Condition 14 of our Electricity Distribution Licence. The main purpose of this statement is to provide our schedule of charges[1] for the use of our Distribution System and to provide the schedule of adjustment factors[2] that should be applied in Settlement to account for losses from the Distribution System. We have also included guidance notes in Appendix 2 to help improve your understanding of the charges we apply.
1.4. Within this statement we use terms such as ‘Users’ and ‘Customers’ as well as other terms which are identified with initial capitalisation. These terms are defined in the glossary.
1.5. The application of charges to premises can usually be referenced using the Charge Code contained in the charge tables. The Charge Code is applied by reference to the combination of the LLFC, PC and SSC attached to a supply point. Further information on how to identify and calculate the charge that will apply for your premise is provided in the guidance notes in Appendix 2.
1.6. All charges in this statement are shown exclusive of VAT. Invoices will include VAT at the applicable rate.
1.7. The annexes that form part of this statement are attached in spreadsheet format. This spreadsheet contains supplementary information used for charging purposes and a simple model to assist you to calculate charges. This spreadsheet can be downloaded from
How are Charging Methodology is Regulated
1.8Modifications to the statement of use of system charging methodologyare subject to Ofgem’s approval.
1.9Condition 13.3 of our licence specifies a set of relevant objectives for our charging methodologies. These are:
(a) that compliance with the methodology facilitates the discharge by the licensee of the obligations imposed on it under the Act and by this licence;
(b) that compliance with the methodology facilitates competition in the generation and supply of electricity, and does not restrict, distort, or prevent competition in the transmission or distribution of electricity;
(c) that compliance with the methodology results in charges which reflect, as far as is reasonably practicable (taking account of implementation costs), the costs incurred by the licensee in its Distribution Business;
(d) that, so far as is consistent with subparagraphs (a), (b), and (c), the methodology, as far as is reasonably practicable, properly takes account of developments in the licensee’s Distribution Business; and
(e) compliance with the Regulation and any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators.
1.10 Condition 13.4 of our licence specifies that before making a modification of the charging methodology we must send to Ofgem a report which sets out:
(i) the terms proposed for the modification,
(ii) how the modification would better achieve the Relevant Objectives, and
(iii) a timetable for implementing the modification and the date with effect from which the modification (if made) is to take effect.
1.11Condition 13.7 empowers Ofgem to veto modifications to our charging methodology.
1.12 Condition BA2 of our licence places additional restrictions on our charging methodology in respect of domestic customers:
1. The licensee must make, and continue to make, charges available, in accordance with the requirements of this condition, for the provision of Use of System to any Authorised supplier of electricity that uses or wishes to use the licensee's Distribution System to supply electricity to Domestic Customers.
2. The licensee's Use of System Charges in relation to Domestic Customers may vary according to the Distribution Services Area of the Electricity Distributor within which Domestic Premises are connected to the licensee's Distribution System.
3. The licensee must set those Use of System Charges so that, except with the Authority's consent, the standing charge, unit rate, and any other component of the charges does not exceed the Use of System Charges to equivalent Domestic Customers ("the equivalent charges").
4. For the purposes of paragraph 3, equivalent charges are the Use of System Charges made by the Electricity Distributor which has a Distribution Services Direction that specifies the Distribution Services Area in which the Domestic Premises connected to the licensee's Distribution System are located.
Validity period
1.13. This charging statement is valid for services provided from the effective date stated on the front of the statement and remains valid until updated by a revised version or superseded by a statement with a later effective date.
1.14. When using this charging statement care should be taken to ensure that the statement or statements covering the period that is of interest are used.
1.15. Notice of any revision to the statement will be provided to Users of our Distribution System. The latest statements can be downloaded from
Contact Details
1.16. If you have any questions about this statement, please contact us at the below address:
Business Operations Manager
Harlaxton Energy Networks Limited
Toll Bar Road
Marston
Grantham
Lincolnshire
NG32 2HT
Tel: +44 (0) 844 800 1813
Email:
1.17. All enquiries regarding Connection Agreements and changes to maximum capacitiesshould be addressed to:
Electricity Operations Manager
Harlaxton Energy Networks Limited
Toll Bar Road
Marston
Grantham
Lincolnshire
NG32 2HT
Tel: +44 (0) 844 800 1813
Email:
1.18. For all other queries please contact our general enquiries telephone service on +44 (0) 844 800 1813 lines are open 08:00 to 18:00 Monday to Friday.
Identification of the Host DNO Area
1.19 Many of our use of system charges vary between the 14 DNO areas in England, Wales or Scotland. This is necessary because of condition BA2 of our licence and because of differences in the upstream charges that we are subject to.
1.20 We use the phrase “Host DNO Area” to refer to the DNO area relevant to the calculation of each tariff. The Host DNO Area is determined as follows:
(a)For a Domestic Customer, the Host DNO Area is the Distribution Services Area containing the location at which the customer is connected to our system.
(b)Otherwise, the Host DNO Area is the Distribution Services Area of the Distribution Services Provider (regional DNO) which provides the main supply into the relevant section of our system, if any.
(c)If the main supply into the relevant section of our system does not come from a Distribution Services Provider (e.g. it our system is fed directly from the transmission network), then the Host DNO Area is the Distribution Services Area corresponding to the relevant GSP Group.
2.Application and Determination of Charges
2.1. The following section details how the charges in this statement are applied and billed to Users of our Distribution System.
2.2. We utilise two billing approaches depending on the type of metering data received. The ‘Supercustomer’ approach is used for Non-Half-Hourly (NHH) metered, NHH unmetered or aggregated Half-Hourly (HH) metered premises. The ‘Site-specific’ approach is used for other HH metered or pseudo HH unmetered premises.
2.3. Typically NHH metered premises are domestic and small businesses, whilst HH metered premises are larger businesses. Unmetered premises are normally streetlights.
Supercustomer Billing and Payment
2.4. Supercustomer billing and payment applies to Metering Points registered as Non-Half-Hourly (NHH) metered, NHH unmetered or aggregated Half-Hourly metered premises. The Supercustomer approach makes use ofaggregated data obtained from the ‘Supercustomer Distribution Use of System (DUoS)Report’.
2.5. Invoices are calculated on a periodic basis and sent to each User for whom Harlaxton Energy Networks is transporting electricity through its Distribution System. Invoices are reconciled, over aperiod of approximately 14 months, to ensure the cash positions of Users and Harlaxton Energy Networks areadjusted to reflect later and more accurate consumption figures.
2.6. The charges are applied on the basis of the Line Loss Factor Class (LLFC) assigned to a Meter Point Administration Number (MPAN), and the units consumed within the time periods specified in the statement. These time periods may not necessarily be the same as those indicated by the Time Pattern Regimes (TPRs) assigned to the Standard Settlement Configuration (SSC) – specific to Distribution Network Operators (DNOs). All LLFCs are assigned at the sole discretion of Harlaxton Energy Networks. The charges in this document are shown exclusive of VAT. Invoices take account of previous Settlement Runs and include VAT.
Supercustomer Charges
2.7. Supercustomer Charges are generally billed through the following components:
- A fixed charge - pence/MPAN/day; there will only be one fixed charge applied to eachMPAN; and
- Unit charges - pence/kWh, more than one unit charge may be applied.
2.8. Users who wish to supply electricity to Customers whose metering system is MeasurementClass A or B, and settled on Profile Class 1 through to 8 will be allocated the relevantcharge structure set out in Annex 1.
2.9. Measurement Class A charges apply to exit/entry points where NHH metering is used forsettlement.
2.10. Measurement Class B charges apply to exit points deemed to be suitable as unmeteredsupplies as permitted in the Electricity (Unmetered Supply) Regulations 2001[3] and whereoperated in accordance with BSCP520[4].
2.11. Measurement class F and G charges apply to Exit / Entry Points where HH aggregated metering data is used for Settlement.
2.12. Identification of the appropriate charge can be made by cross-reference to the Harlaxton Energy Networks Ltd Charge Code.
2.13. Valid Settlement Profile Class/Standard Settlement Configuration/Meter Timeswitch Code(PC/SSC/MTC) combinations for these LLFCs are detailed in Market Domain Data (MDD).
2.14. Where an MPAN has an Invalid Settlement Combination, the ‘Domestic Unrestricted’ fixedand unit charge will be applied as default until the invalid combination is corrected. Wherethere are multiple SSC/TPR combinations, the default ‘Domestic Unrestricted’ fixed and unitcharge will be applied for each invalid TPR combination.
2.15. The time periods for unit charges where the Metering System is Measurement Class A and B are as specified by the SSC. To determine theappropriate charge rate for each SSC/TPR a lookup table is provided in the spreadsheets which accompany this statement.
2.16. The time periods for unit charges where the Metering System is Measurement Class F and G are set out in the table ‘Time Bands for Half Hourly Metered Properties’ in Annex 1.
2.17. The ‘Domestic Off-Peak’ and ‘Small Non-Domestic Off-Peak’ charges are additional to either an unrestricted or a two-rate charge.
Site-Specific Billing and Payment
2.18. Site-specific billing and payment applies to Measurement Class C, D and E, Metering Points settled as Half Hourly (HH)metered. The site-specific billing and payment approach to Use of System (UoS) billingmakes use of HH metering data received through settlement.
2.19. Invoices are calculated on a periodic basis and sent to each User, for whom Harlaxton Energy Networks is transporting electricity through its Distribution System. Where an account is based onestimated data, the account shall be subject to any adjustment that may be necessaryfollowing the receipt of actual data from the User.
2.20. The charges are applied on the basis of the LLFCs assigned to the MPAN (or the MSID forCentral Volume Allocation (CVA) sites), and the units consumed within the time periodsspecified in this statement.
2.21. All LLFCs are assigned at the sole discretion of Harlaxton Energy Networks. Where an incorrectly applied LLFC is identified, Harlaxton Energy Networks may at its sole discretion apply the correct LLFC and/or charges.
Site-Specific Billed Charges
2.22. Site-Specific billed charges may include the following components:
- a fixed charge pence/MPAN/day or pence/MSID/day;
- a capacity charge, pence/kVA/day for Maximum Import Capacity (MIC) and/orMaximum Export Capacity (MEC);
- an excess capacity charge, pence/kVA/day, if a site exceed its MIC and/or MEC;
- unit Charges, pence/kWh, more than one unit charge may be applied; and
- an excess reactive power charge, pence/kVArh, for each unit in excess of thereactive charge threshold.
2.23. Users who wish to supply electricity to Customers whose Metering System is MeasurementClass C, D or E or CVA will be allocated the relevant charge structure dependent upon thevoltage and location of the metering point.
2.24. Measurement Class C, E or CVA charges apply to exit/entry points where HH metering, oran equivalent meter, is used for settlement purposes.
2.25. Measurement Class D charges apply to exit/entry points deemed to be suitable asunmetered supplies as permitted in the Electricity (Unmetered Supply) Regulations 2001[5]and where operated in accordance with BSCP520[6].
2.26. Fixed charges are generally levied on a pence per MPAN or pence per MSID basis. Where two or more HH MPANs are located at the same point of connection (as identified in the connection agreement), with the same LLFC, and registered to the same Supplier, only one daily fixed charge will be applied.
2.27. LV & HV Designated Properties will be charged in accordance with the CDCM and allocated the relevant charge structure set out in Annex 1.
2.28. Designated EHV Properties will be charged in accordance with the EDCM and allocated therelevant charge structure set out in Annex 2. For clarity, Harlaxton Energy Networks does not currently have anyDesignated EHV properties.
2.29. Where LV and HV Designated Properties or Designated EHV Properties have more thanone point of connection then separate chargeswill be applied to each point of connection.
Time Periods for HH Metered Properties
2.30. The time periods for the application of unit charges to LV and HV Designated Propertiesthat are HH metered are detailed in Annex 1. Harlaxton Energy Networks has not issued a notice to change thetime bands.
2.31. The time periods for the application of unit charges to Designated EHV Properties aredetailed in Annex 2. Harlaxton Energy Networks has not issued a notice to change the time bands.
Time Periods for Pseudo HH Unmetered Properties
2.32. The time periods for the application of unit charges to connections that are Pseudo HHMetered are detailed in Annex 1. Harlaxton Energy Networks has not issued a notice to change the time bands.
Application of Capacity Charges
2.33. The following sections explain the application of Capacity Charges and Exceeded CapacityCharges.
Chargeable Capacity
2.34. The Chargeable Capacity is, for each billing period, the highest of the MIC/MEC as detailed below.
2.35. The MIC/MEC will be agreed with Harlaxton Energy Networks at the time of connection or pursuant to a later change in requirements. Following such an agreement (be it at the time of connection or later) no reduction in MIC/MEC will be allowed for a period of one year.
2.36. Reductions to the MIC/MEC may only be permitted once in a 12 month period and no retrospective changes will be allowed. Where MIC/MEC is reduced the new lower level will be agreed with reference to the level of the Customer’s maximum demand. It should be noted that where a new lower level is agreed the original capacity may not be available in the future without the need for network reinforcement and associated charges.
2.37. In the absence of an agreement the chargeable capacity, save for error or omission, will be based on the last MIC and/or MEC previously agreed by the distributor for the relevant premises connection. A Customer can seek to
agree or vary the MIC and/or MEC by contacting Harlaxton Energy Networks using contact details noted within this statement.
Exceeded Capacity
2.38. Where a customer takes additional unauthorised capacity over and above the MIC/MEC, the excess will be classed as Exceeded Capacity. The exceeded portion of the capacity will be charged at the excess capacity charge p/kVA/day rate, based on the difference between the MIC/MEC and the actual capacity used. This will be charged for the full duration of the month in which the breach occurs.
Demand Exceeded Capacity
Demand exceeded capacity = max(2xAI²+max(RI,RE) ²-MIC,0)
Where:
AI = Active Import (kWh)
RI = Reactive Import (kVArh)
RE = Reactive Export (kVArh)
MIC = Maximum Import Capacity (kVA)
2.39. Only reactive import and reactive export values occurring at times of active import are usedin the calculation. Where data from two or more MPAN’s is aggregated for billing purposes the HH consumption values are submitted prior to the calculation above. For sites which are importing and exporting in the same HH, i.e. where active import is not equal to zero and active export is not equal to zero, use zero for reactive import and reactive export when calculating capacity taken.