LLF Methodology Statement EHV and HV Definitions Background In December 2010, the Authority directed changes to the Standard Licence Conditions (SLC) definitions of the Common Distribution Charging Methodology (CDCM) and Extra High Voltage Distribution Charging Methodology (EDCM). Balancing and Settlement Code (BSC) Change Proposal 1343 was subsequently raised and implemented to ensure that the treatment of line losses for High Voltage (HV) and Extra High Voltage (EHV) sites remains the same irrespective of changes in the DCUSA. To achieve this, Balancing and Settlement Code Procedure (BSCP)128 was amended such that LSDOs must define EHV and HV in their Line Loss Factor Methodology Statements, rather than the definition being connected to the distribution licence. The first set of Line Loss Factor Methodology Statements produced after the implementation of CP1343 were presented to the Supplier Volume Allocation Group (SVG) for approval at its meeting on 31 August 2011. The Supplier Volume Allocation Group Concerns At this meeting, the SVG approved each of the Line Loss Factor Methodology Statements. However, it noted that each LDSO has defined High Voltage and Extra High Voltage differently (a list of these definitions can be found in Appendix 1). The SVG expressed concerns about the impact that these differences may have on competition and the additional complexity that it adds to the market. The group asked that ELEXON raise the possibility of introducing a standardised EHV and HV definition at the Distribution Charging Methodology Forum. Next Steps DCMF members are invited to share their views on the Line Loss Factor Methodology Statement definitions of EHV and HV and comment on whether a standardised definition of EHV and HV should be introduced. The feedback received will be presented to the SVG. 22 November 2011 Page 1 of 2 © ELEXON 2011 Appendix 1: Approved LLF Methodology Statement definitions of EHV and HV Name of Distribution Business Northern Powergrid (Northern Electric Distribution Limited) & (Yorkshire Electricity Distribution plc) UK Power Networks Operating in GSP Groups Northern, Yorkshire EHV and HV Definition EHV - Premises or distribution systems metered at nominal voltages at or above 22 kilovolts (22kV); or Premises or distribution systems metered at below 22 kilovolts (22kV) but connected to a dedicated, non-distributing, primary substation with transformers having ratios of 132/66/33kV to the metered voltage. HV - premises or Distribution Systems metered at nominal voltages of less than 22 Kilovolts (22kV), but greater than 1 kilovolt (1KV) excluding any site defined as EHV. Eastern, London, South Eastern EHV - A nominal voltage of 22,000 volts or above, or for the purposes of this LLF methodology a customer connected site to a substation with a primary voltage of 66,000 Volts or above. In practice, this means sites with exit points at 132 kV, 33 kV, and 25 kV or at a 132/11 & 132/6.6 kV substation. HV - A nominal voltage greater than 1000 volts and less than 22,000 volts, excluding any site defined as EHV. Electricity North West Limited North Western EHV - Premises or distribution systems metered at nominal voltages of 22kV or above. HV - Premises or distribution systems metered at nominal voltages of less than 22kV, but greater than 1kV excluding any site defined as EHV. Scottish Power Southern Electric Power Distribution plc Merseyside and North Wales, South Scotland EHV connection is defined as a connection to the network at a nominal voltage of 22kV or above. Southern EHV - Nominal voltages of 22kV.and above. In practise, this means sites with exit points at 132 kV, 66 kV, 33 kV and 22 kV or at a 132/33 kV, 132/11 kV, 66/22 kV or 66/11 kV substation. HV connection is defined as a connection to the network at a nominal voltage of greater than 1kV and less than 22kV. HV - Nominal voltages of greater than 1kV and less than 22kV excluding any site defined as EHV. Scottish Hydro Electric Power Distribution plc North Scotland Western Power Distribution East Midlands, Midlands, South Wales, South Western EHV - Nominal voltages of 22kV and above. In practise, this means sites with exit points at 33 kV and BSP/11 kV. HV - Nominal voltages of greater than 1kV and less than 22kV excluding any site defined as EHV. Extra High Voltage (EHV) applies to premises or distribution systems metered at nominal voltages of 22kV and above. Those sites connected at the 11kV bus bars of a primary substation whose primary voltage is 132kV or 66kV will be regarded as EHV for the purposes of this methodology. High Voltage (HV) applies to premises or distribution systems metered at nominal voltages of at least 1kV and less than 22kV excluding any site defined as EHV. 22 November 2011 Page 2 of 2 © ELEXON 2011