Select Committee on Northern Ireland Affairs Minutes of Evidence


APPENDIX 25

Memorandum submitted by the Office of Electricity Regulation

USE OF SYSTEM CHARGES

  I enclose a table which sets out Distribution and Transmission Use of System charges on a regional basis. Accompanying notes explain the derivation of, and assumptions behind, the figures.

15 April 1999

Distribution and transmission costs in England and Wales for standard domestic customer
DUoS
Transmission
1993-94Standing Charge £/year Unit Rate p/kWhDUoS Bill £/year Infrastructure Charge £/kWTUoS Bill £/year Use of System Bill
Eastern24.801.60 77.6012.108.96 86.56
East Midlands33.841.51 83.679.206.80 90.47
London37.201.75 95.0815.5610.86 105.94
13.7810.20105.28
Manweb44.881.72 101.649.547.06 108.70
MEB25.121.59 77.5910.357.66 85.25
Northern39.721.67 94.677.615.63 100.30
Norweb38.961.61 92.0910.007.40 99.49
Seeboard28.961.66 83.7410.297.61 91.35
Southern35.161.52 85.3213.209.77 95.09
Swalec40.602.35 118.1512.088.94 127.09
Sweb38.202.03 105.1913.6610.11 115.30
13.6610.11115.30
Yorkshire32.641.79 91.719.046.69 98.40
England and Wales Average35.01 1.7392.2011.43 8.41100.62

Distribution and transmission costs in England and Wales for standard domestic customer
DUoS
Transmission
1998-99Standing Charge £/year Unit Rate p/kWhDUoS Bill £/year Infrastructure Charge £/kWTUoS Bill £/year Use of System Bill
Eastern14.241.37 59.459.336.91 66.36
East Midlands23.001.50 72.507.635.65 78.15
London28.801.42 75.7614.0610.41 86.16
Manweb31.081.78 89.825.363.96 93.78
MEB26.481.34 70.549.236.83 77.37
Northern18.761.91 81.790.540.40 82.19
Norweb32.601.44 80.125.323.93 84.05
Seeboard18.481.48 67.3210.517.77 75.09
Southern27.001.40 73.2013.069.67 82.87
Swalec38.682.05 106.3314.6110.81 117.14
Sweb28.401.88 90.4416.3912.13 102.57
Yorkshire19.201.68 74.644.833.57 78.21
England and Wales Average25.56 1.6078.499.24 6.8485.33

Distribution and transmission costs in Scotland for standard domestic customer
DUoS
Transmission
1993-94Standing Charge £/year Unit Rate p/kWhDUoS Bill £/year Unit RateTUoS Bill £/year Use of System Bill
Scottish Hydro20.641.13 57.930.227.26 63.54
Scottish Power36.121.24 77.040.4213.86 90.90
Average28.381.19 67.490.3210.56 78.05
GB Average34.061.65 88.6710.048.68 97.35

Distribution and transmission costs in Scotland for standard domestic customer
DUoS
Transmission
1998-99Standing Charge £/year Unit Rate p/kWhDUoS Bill £/year Unit RateTUoS Bill £/year Use of System Bill
Scottish Hydro24.441.69 80.210.4013.20 93.41
Scottish Power23.562.18 95.500.175.61 101.11
Average24.001.94 87.860.299.41 97.26
GB Average25.341.65 79.837.967.20 87.03

NOTES

Distribution Use of System charges (DUoS)

  Rates are PES published DUoS charges as at 1 April of each year.

  DUoS bill £/year calculated assuming average annual consumption for a standard domestic customer of 3300 kWh.

Transmission Use of System charges (TUoS)

  For England and Wales RECs, transmission charges are levied by NGC. NGC charges an amount per kW based on demand taken at time of system peak. Therefore, we have assumed that a domestic customer takes 0.74 kW at time of system peak and so the transmission charge related to a standard domestic customer equals 0.74 x NGC's charge per kW. These charges vary zonally. In 1993-94 NGC's charging zones did not coincide with RECs' geographical areas. For example, NGC had two charging zones each in London and SWEB's areas. We have therefore roughly allocated NGC zones to RECs, but such allocation should be treated with caution. In 1998-99, NGC's charging zones were identical to REC areas and so this problem does not arise.

  In Scotland, ScottishPower and Scottish Hydro publish separately transmission charges on a pence/kWh basis for standard domestic customers. These are therefore given both as a unit rate and as an annual bill calculated using 3300 kWh consumption.

Total Use of System bill

  A Great Britain average may be derived by combining all Use of System bills and averaging over 14, to give £97.35 and £87.03 in 1993-94 and 1998-99 respectively.


 
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Prepared 29 July 1999