DCMF Methodologies Issues Group (MIG) –
Commonality of Default Charging for Invalid Settlement Class Combinations (ISCC) subgroup
Terms of Reference
Introduction
This paper sets out the Terms of Reference (ToR) for the Commonality of Default Charging
for ISCCs which reports to the DCMF MIG. The Commonality of Default Charging for ISCCs
has been formed by the distribution network operators (DNOs) to examine the issue of a
lack of commonality in charging for Invalid Settlement Class Combinations. This paper sets
out the membership, meeting frequency, scope of its activities and publication of relevant
documentation for the sub-group.
The group shall in all instances act in accordance to paragraphs 1 to 6 of the DCMF MIG
terms of reference: http://energynetworks.squarespace.com/dcmf-file-storage/.
Meeting Frequency and Location
The Commonality of Default Charging for ISCCs will hold meetings as and when required to
achieve the target implementation date of 01 April 2012 (and therefore the target DCUSA
panel date of September 2011. These meetings will be by teleconferences or face-to-face
meetings as appropriate.
Membership of the sub-group
The Commonality of Default Charging for ISCCs must include:

A DNO representative

A Supplier representative

[others to be added as required]

Any other interested party
Appointment of the Chair
The chair of the Commonality of Default Charging for ISCCs will be appointed by the DCMF
MIG chair and will be responsible for:

the management and smooth running of the Commonality of Default Charging for
ISCCs;

ensuring the Terms of Reference are observed;

facilitating the cooperation, commitment and pragmatism of the group members; and

reporting to the DCMF MIG on issues raised within the group.
Scope
Invalid Settlement Class Combinations are an unwelcome data quality issue present within
industry settlement data that pre-date the introduction of the CDCM. In 2009 CP1269
introduced a new entity into Market Domain Data (via CP3300) called, Valid MTC LLFC SSC
PC Combination. This had the effect of preventing Suppliers from registering customers
onto Settlement Class Combinations that were invalid and likely to result in difficulties for
Distributors in the application of charges and for Suppliers in the validation of those charges.
This change did not address the numerous invalid combinations currently in the data set. In
the development of CDCM it was agreed that Distributors should deal with invalid
combinations via the application of a default tariff if one is published. This did little to bring
commonality to the charging process. The scope of the sub group is to examine the extent
to which invalid combinations affect DUoS settlement and recommend a solution.
Deliverables
Currently there are three methodologies for dealing with invalid Settlement Class
Combinations:
1. Apply a default tariff equivalent to the Distributor’s Domestic Unrestricted tariff
2. Apply the tariff applicable to the LLFC present in the Invalid Settle Class Combination
3. Do not apply a charge
The objective of the sub group is to consider the current arrangements to ascertain whether
all parties would benefit from developing a common approach to charging for ISSCs. The
deliverables should include:

Distributor and Supplier consultation to assess the scale and impact of ISCCs

Summary report outlining scale and impact of ISCCs on all parties and
recommendations derived from the findings

Distributor and Supplier consultation on recommendations if applicable

Interim Report to DCMF

Final report to DCMF

Submission of change proposal if applicable
The group will feedback to the monthly DCMF MIG meeting by way of a written report.
Timescales
Activity
Target Date
Interim Report to DCMF
July 2011
Industry Consultation
July 2011 – September 2011
Final Report to DCMF
September 2011
Submit to DCUSA Panel
September 2011
Implementation
April 2012
Secretarial Support and Professional Advisers
Secretarial and external consultant support can be provided on request to the MIG Chair.
Competition Law Compliance
The role of the DCMF MIG and its sub-groups is to co-ordinate DNO activities in the analysis
and support of change proposals. Its decisions will be limited to agreeing how to analyse
and implement change proposals raised through the DCUSA governance processes and
through the DCMF.
Sub-group members will not exchange commercially sensitive information amongst
themselves. Where the sub-group chair considers that anti-competitive discussions are
occurring the meeting will be terminated immediately and the reason recorded in the
minutes.
Publication of sub-group materials
The Secretariat will publish information on the Electricity Network Association’s (ENA)
website.
The website shall be the repository for holding the meeting schedule and action logs
resulting from each meeting and any presentations and/or papers discussed at the
meetings. This facilitates availability of information to all interested parties.
Funding
The sub-group chair shall seek the views of the DCMF chair before taking on any significant
amount of work.
Where the sub-group requires instruction, clarification or guidance on scope or process the
sub-group chair should contact the DCMF Secretary.