Terms of Reference Overview TADG 1 st Meeting – July 2006 TADG Working Group
Objectives of working group Seek to identify options for change to the transmission arrangements as they � affect distributed generation – Minimising implementation costs. Not impose undue implementation or administrative costs on industry participants & thus consumers. – Cost reflectivity. Reflect the costs industry participants impose on the system, thereby promoting effective competition between industry participants. – Efficient network development. Encourage efficient decisions regarding the development and use of the transmission and distribution networks. TADG Working Group
Scope of work Four Key Areas Charging arrangements � – ensure parties pay charges which reflect the costs they impose on the networks – remove the scope for perverse incentives in deciding where to connect Transmission access � – the nature of access rights appropriate to distributed generation – any interactions with ARODG � Operation and planning of the GB transmission system – impact of distributed generation vis-à-vis transmission connected generation – implications for system planning and operational control – interface issues Ease of implementation and implementation costs � TADG Working Group
Key questions for the group � To what extent is the impact of distributed generation on the GB transmission system the same as transmission connected generation? � Are the existing transmission access products appropriate to distributed generators? � If a distributed generator does not have firm transmission access rights then how can its export to the GB transmission system be controlled? TADG Working Group
Programme of work � Six meetings Meeting 1 - identifying range of agency models for development Meeting 2 - form of appropriate charging arrangements Meeting 3 - transmission access issues Meeting 4 - issues of system planning and operational control Meeting 5 - implementation issues e.g. code changes, costs Meeting 6 – refine models and test against objective of the group � Views on approach TADG Working Group
Organisation of meetings 1. Administrative considerations - who chairs? who is the secretariat? – default is Ofgem 2. Location of meetings – default Millbank. 3. Timescales – how often should we meet? - default is monthly 4. Number of meetings – initially 6 5. Who attends – almost 30, “big group” 6. Output of meetings – notes and papers on Ofgem’s website TADG Working Group
Deliverables Key deliverable � a working group report detailing a range of agency models and identifying associated changes to transmission arrangements for distributed generation – detail necessary changes and issues associated with implementing options – clarifying the need for change to industry codes and other related documentation; and – identifying the future benefits and costs of any option TADG Working Group
Promoting choice and value for all gas and electricity customers TADG Working Group
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