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High level Forecast Business Plan
DNO (enter name)                                                                  print

Financial Issues section
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   Guidance for completion of tables

   Financial data
       Revenue
       Pension costs and data

   Taxation
       Capital expenditure allocations to "Tax" Pools
       Notional Capital Allowances on RPs non-operational "distribution" assets
       Capital allowances disclaimed

   DPCR4 Regulatory Asset Value
      RAV calculation adjustments
      DPCR4 Regulatory asset value additions computation


   All prices are 2007/08 values




C:\Docstoc\Working\pdf\8af85594-2b8c-4ec3-9bdd-0d84739bab19.xls                           5/4/2011
High level Forecast Business Plan
DNO (enter name)                                                                             Navigation - Index
Guidance for completion of tables
 Enter DNO name in cell A2 on Index sheet

 All values are to be input in constant 2007/08 prices.

 All definitions from the 2007/08 both RRP Instructions and Guidance and Revenue RIGs apply

 Unless indicated otherwise (by –ve) all entries should be positives

 Please provide your assumptions on which the forecast/estimates have been prepared in the boxes provided at the
 foot of each table

 Revenue
 Forecast revenues are only required for 2008/096 and 2009/10 except excluded services where forecasts for DPCR5
 are required on the basis that the current definitions in the special licence conditions do not change and for de minimis
 revenues.

 Pensions
 Provide data on the basis of pension funding and underlying assumptions on market conditions being stable

 Where increase in rates of normal contributions and of deficit funding are known use these.

 Attribution of meeting current pension service cost for Defined Benefit schemes - percentage
           Provide in percentages the attribution of funding normal pension cost to the building blocks. This is needed for
           2008/09 and 2009/10 to drive the forecast RAV computation. For DPCR5 the attributions if different may be used to
           inform pensions treatment. It is recognised that these percentages may move with the assumption underlying
           network investment and resourcing. Your underlying assumptions supporting these allocations should be provided in
           the assumptions box.

 Capex allocations to capital allowance pools:

 Provide the allocations to the various "tax pools" as a percentage of each activity/building block's costs

 For Network operating costs capitalised (excluding Faults) , Engineering indirects capitalised and Business Support
 capitalised these are the amounts of each that are capitalised and will not add up to 100%, the percentage that is not
 capitalised should be the balancing figure and entered in the "Not capitalised" row.

 The capital allowance pools are structured around the rates of allowances:
     ·     20% being ‘General pool of Plant and Machinery’ which should include expensive cars
     ·     10% ‘Long life pool’ – assets with useful life of more than 25 years and to include ‘integral features’
     ·     Deferred revenue expenditure –the rate used must be specified
     ·     IBAs – post April 2011 expenditure which would have qualified as IBAs should still be reported under the IBA
     row for completeness
     ·     100% - First Year Allowances
     ·     Non-qualifying asset additions, excluding post April 2011 expenditure which would have qualified as IBAs

 We have ignored spend on R&D/Innovation and Environmental, if there are any such costs include in the percentages
 for First Year Allowances and break this down in please include commentary in the assumptions.

 Notional Capital Allowances on Related Parties non-operational "distribution" assets
 For DPCR4 that element of non-op capex owned by related parties used in the distribution business has been allowed
 into RAV. For symmetry the capital allowances thereon should be taken into account in computing future revenues.
 As that data has not been collected this is needed for 2005/06 and 2006/07. It has been included in the 21007/08
 RRP. Note only such expenditure incurred after 1 April 2005 should be reported. This must agree to or be reconciled
 with that reported in the historic RRPs for those years.

 RAV calculation adjustments
 For 2008/09 and 2009/10 only.

 These are all the entries needed to compute a forecast RAV position on DPCR4 rules (set out in the DPCR4 Final
 Proposals and followed in the historic RRPs).

 It is accepted that some amounts may be small and therefore impractical to forecast. In the assumptions box please
 provide an explanation for such data absence.

 DPCR4 RAV additions
 This table is basically that in the RRPs and is automatically populated from the previous table and the pension data
 table. The only data entry required is the disallowed cost element of pension deficit repair costs. A copy of Table 8.3
 from the Final Proposals has been provided showing the allowed and disallowed element by DNO.

 Problems with the HLBPQ or completion issues please contact:
          Bill McKenzie       020 7901 7220        william.mckenzie@ofgem.gov.uk
          Kieran Donoghue     020 7901 7356        kieran.donoghue@ofgem.gov.uk
High level Forecast Business Plan
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DNO (enter name)
Regulated Distribution Business - Analysis of Forecast Turnover
Regulated Distribution Business - Analysis of Forecast Turnover

                                                                       DPCR4
 For the regulatory financial year ending 31 March                2008-09 2009-10
                                                                    £m       £m
 Price Controlled Turnover

 Pass through costs
  Licence fees
  Business Rates
  Shetland Balancing Costs (SHEPD only)
  Uncertain costs
  Other pass through items
                              Total: Allowed pass through costs         -        -

 Revenue Outside the Price Control
  Transmission Connection Point Charges
  Transmission Connection Point Charges (Excluded Service EHV)
  Wheeled Units
  Out of Area Networks
                        Total Revenue Outside the Price Control         -        -

 Excluded Services Turnover                                                          2010-11    2011-12      2012-13    2013-14    2014-15
  ES1 EHV
  ES2 Connections
  ES3 Revenue Protection
  ES4 Charging Statement
  ES5 Non Trading Rechargeables
  ES6 Non Trading Rechargeables
  ES7 A Top Up and Standby
  ES7 B Security
  ES8 Reactive Power Charges
  ES9 Other Excluded Services
  ES10 Metering Excluded Services
                              Total Excluded Services turnover:       0.0      0.0        0.0          0.0        0.0        0.0        0.0

 De minimis turnover

 Assumptions made in forecasting each element of revenue above (cells will wrap text where required)
High level Forecast Business Plan
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DNO (enter name)
Pension costs and data

Pensions data on a cash not P&L charge basis
                                                                                                ESPS or principle Scottish DB scheme (enter name)                                                Enter name of second DB scheme                                                       Enter name of third DB scheme                                                      Total of Defined Benefit schemes
                                                                                          2008-09     2009-10      2010-11     2011-12     2012-13     2013-14     2014-15     2008-09     2009-10     2010-11     2011-12     2012-13     2013-14     2014-15     2008-09     2009-10      2010-11      2011-12     2012-13     2013-14     2014-15     2008-09    2009-10    2010-11    2011-12    2012-13    2013-14    2014-15
                                                                                            £m          £m           £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m           £m           £m          £m          £m          £m          £m         £m         £m         £m         £m         £m         £m

 Cost of meeting current pension service cost for Defined Benefit schemes - cash
 Employee's contributions (as %age of pensionable pay)                                        0.0%       0.0%         0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%         0.0%         0.0%        0.0%        0.0%        0.0%        0.0%       0.0%       0.0%       0.0%       0.0%       0.0%       0.0%
 Actual / forecast pension funding cost (as %age of pensionable pay)                          0.0%       0.0%         0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%        0.0%         0.0%         0.0%        0.0%        0.0%        0.0%        0.0%       0.0%       0.0%       0.0%       0.0%       0.0%       0.0%

 Employee's contributions (£m)                                                                                                                                                                                                                                                                                                                                 0          0          0          0          0          0          0

 Actual / forecast pension funding cost - employer contributions (£m)                                                                                                                                                                                                                                                                                           0          0          0          0          0          0          0
 Forecast PPF levy (£m)                                                                                                                                                                                                                                                                                                                                         0          0          0          0          0          0          0
 Pension admin costs (if not included above) (£m)                                                                                                                                                                                                                                                                                                               0          0          0          0          0          0          0
 Total ongoing pension funding payment (£m)                                                     0.0         0.0          0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0           0.0         0.0         0.0         0.0         0.0        0.0        0.0        0.0        0.0        0.0        0.0        0.0
 Pension deficit funding cost (cash £m)                                                                                                                                                                                                                                                                                                                         0          0          0          0          0          0          0
 Funding of pension related severance costs                                                                                                                                                                                                                                                                                                                     0          0          0          0          0          0          0
 Total ongoing and deficit pension funding payment (£m)                                         0.0         0.0          0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0         0.0           0.0         0.0         0.0         0.0         0.0        0.0        0.0        0.0        0.0        0.0        0.0        0.0

 Pension admin costs paid by the licensee (and not included in line 18 above) (£m)                                                                                                                                                                                                                                                                             0          0          0          0          0          0          0

 Attribution of meeting current pension service cost for Defined Benefit schemes - percentage
 Distribution business                                                                %                 %            %           %           %           %           %           %           %           %           %           %           %           %           %           %             %           %           %           %           %
     Direct capex (Load & Non-load)                                                                                                                                                                                                                                                                                                                       #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!
     Non-operational capex                                                                                                                                                                                                                                                                                                                                #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!
     Network operating costs (e.g. Direct opex, faults)                                                                                                                                                                                                                                                                                                   #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!
     Indirect costs (Engineering indirects and Business Support costs)                                                                                                                                                                                                                                                                                    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!
     Relevant Excluded services (ES1, ES3, ES4, ES7A, ES7B, ES8 and ES9)                                                                                                                                                                                                                                                                                  #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!
     Non relevant excluded services (ES5, ES6 and ES10)                                                                                                                                                                                                                                                                                                   #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!
 All non-distribution activities (excluding Excluded Services) - balancing amount    100.0%            100.0%       100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%        100.0%      100.0%      100.0%      100.0%      100.0%      #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!
 Total                                                                               100.0%            100.0%       100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%        100.0%      100.0%      100.0%      100.0%      100.0%     #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!    #DIV/0!

 Cost of meeting current pension service cost - Defined Contribution schemes
                                                                                                                  Enter name of first DC scheme                                                   Enter name of second DC scheme                                                           Enter name of third DC scheme                                                Total of Defined Contribution schemes
 For the regulatory financial year ending 31 March                                        2008-09     2009-10      2010-11     2011-12     2012-13     2013-14     2014-15     2008-09     2009-10     2010-11     2011-12     2012-13     2013-14     2014-15     2008-09     2009-10      2010-11      2011-12     2012-13     2013-14     2014-15     2008-09    2009-10    2010-11    2011-12    2012-13    2013-14    2014-15
                                                                                            £m          £m           £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m          £m           £m           £m          £m          £m          £m          £m         £m         £m         £m         £m         £m         £m
 Total cash cost of employer payments to Defined Contribution scheme                                                                                                                                                                                                                                                                                            0          0          0          0          0          0          0

 Attribution of meeting current pension service cost for Defined Contribution schemes - percentage
 Distribution business                                                                %         %                    %           %           %           %           %           %           %           %           %           %           %           %           %           %             %           %           %           %           %
     Direct capex (Load & Non-load)                                                                                                                                                                                                                                                                                                                           0.0        0.0        0.0        0.0        0.0        0.0        0.0
     Non-operational capex                                                                                                                                                                                                                                                                                                                                    0.0        0.0        0.0        0.0        0.0        0.0        0.0
     Network operating costs (e.g. Direct opex, faults)                                                                                                                                                                                                                                                                                                       0.0        0.0        0.0        0.0        0.0        0.0        0.0
     Indirect costs (Engineering indirects and Business Support costs)                                                                                                                                                                                                                                                                                        0.0        0.0        0.0        0.0        0.0        0.0        0.0
     Relevant Excluded services (ES1, ES3, ES4, ES7A, ES7B, ES8 and ES9)                                                                                                                                                                                                                                                                                      0.0        0.0        0.0        0.0        0.0        0.0        0.0
     Non relevant excluded services (ES5, ES6 and ES10)                                                                                                                                                                                                                                                                                                       0.0        0.0        0.0        0.0        0.0        0.0        0.0
 All non-distribution activities (excluding Excluded Services) - balancing amount   100.0%     100.0%               100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%        100.0%      100.0%      100.0%      100.0%      100.0%          0.0        0.0        0.0        0.0        0.0        0.0        0.0
 Total                                                                              100.0%     100.0%               100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%      100.0%        100.0%      100.0%      100.0%      100.0%      100.0%          0.0        0.0        0.0        0.0        0.0        0.0        0.0


What contingent assets has the scheme sponsor offered in order to reduce the funding period and to mitigate the PPF levy




Assumptions made in forecasting pensions above (cells will wrap text where required)
High level Forecast Business Plan
DNO (enter name)
Capital expenditure allocations to "Tax" Pools
Percentage allocations to "Tax" Pools using statutory accounting/capitalisation policies
                                                                                      Total
  For the regulatory financial year ending 31 March          2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
                                                                %          %       %   %       %       %       %
  Distribution buisness activities only (ignore metering, relevant DG, de minimis)

  Load related new and replacement expenditure
    General/Plant & Machinery [20%] Pool
    Long life assets (>25yrs) 10% Pool
    Deferred revenue expenditure ("DRE")
    IBAs
    First year allowances
    Non-qualifying fixed asset additions
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Non-Load related new and replacement expenditure
    General/Plant & Machinery [20%] Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
    First year allowances
    Non-qualifying fixed asset additions
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Non-operational capital expenditure
    General/Plant & Machinery [20%] Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
    First year allowances
    Non-qualifying fixed asset additions
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Fault costs capitalised
    General/Plant & Machinery [20%] Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
    First year allowances
    Non-qualifying fixed asset additions
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Network operating costs capitalised (excluding Faults)
    General/Plant & Machinery [20%] Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
    First year allowances
    Not capitalised
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Engineering indirects capitalised
    General/Plant & Machinery [20%] Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
    First year allowances
    Not capitalised
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Business Support capitalised
    General/Plant & Machinery [20%] Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
    First year allowances
    Not capitalised
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Total Distribution business capital expenditure allocation
    General/Plant & Machinery [20%] Pool                   0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%
    Long life assets (>25yrs) Pool                         0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%
    Deferred revenue expenditure ("DRE")                   0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%
    IBAs                                                   0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%
    First year allowances                                  0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%
    Non-qualifying fixed asset additions                   0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%
                                                           0.0%    0.0%      0.0%      0.0%      0.0%    0.0%   0.0%

  Assumptions made in forecasting above cost allocation to pools (cells will wrap text where required)
                    8af85594-2b8c-4ec3-9bdd-0d84739bab19.xls
High level Forecast Business Plan
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DNO (enter name)
Notional Capital Allowances on RPs non-operational "d
Notional Capital Allowances on non-operational assets owned
by related parties used in the distribution business

                                                                                DPCR4
            For the regulatory financial year ending 31 March             2005-06       2006-07
                                                                            £m            £m

            General/Plant & Machinery Pool
            Opening balance per previous year                                                     -
            Net Additions in the year
                                                                                    -             -
            WDA at 20% (25 % until 1 April 2008)                                    -             -
                                                        Closing balance             -             -

            Long life assets (>25yrs) Pool
            Opening balance per previous year                                                     -
            Net Additions in the year
                                                                                    -             -
            WDA at 10%(6 % until 1 April 2008)                                      -             -
                                                        Closing balance             -             -

            Deferred revenue expenditure ("DRE")
            Opening balance per previous year                                                     -
            Net Additions in the year
                                                                                    -             -
            WDA (-ve)                                                               -             -
                                                        Closing balance             -             -

            IBAs
            Rate of allowance                                                  4%            4%
            Opening balance per previous year                                                  -
            Net Additions in the year
                                                        Closing balance             -             -
            AA (-ve)
                                                                                    -             -

            First year allowances
            Additions in the year
            First year allowances thereon

            Rate for Deferred Revenue Expenditure WDA - %
            Economic life for Deferred Revenue Expenditure - years        #DIV/0!




 5/4/2011                                                                                             9
High level Forecast Business Plan
DNO (enter name)                                                                        Navigation - Index
Capital allowances disclaimed
Capital allowances disclaimed
                                                                                 Actual
                                                                         DPCR3                       DPCR4
  For the regulatory financial year ending 31 March     2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
                                                          £m      £m      £m      £m      £m      £m       £m

  Total tax allowances disclaimed by pool
    General/Plant & Machinery Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
                                                              0.0        0.0      0.0        0.0       0.0   0.0   0.0

  Where identifiable disclaimers relating to:
  Metering activity assets
    General/Plant & Machinery Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
                                                              0.0        0.0      0.0        0.0       0.0   0.0   0.0

  Relevant Distributed Generation activity assets
    General/Plant & Machinery Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
                                                              0.0        0.0      0.0        0.0       0.0   0.0   0.0

  Other non distribution activity assets(excluded services, de minimis, IFI)
    General/Plant & Machinery Pool
    Long life assets (>25yrs) Pool
    Deferred revenue expenditure ("DRE")
    IBAs
                                                               0.0       0.0      0.0        0.0       0.0   0.0   0.0

  Total distribution business allowances disclaimed by licensee
    General/Plant & Machinery Pool                            0.0        0.0      0.0        0.0       0.0   0.0   0.0
    Long life assets (>25yrs) Pool                            0.0        0.0      0.0        0.0       0.0   0.0   0.0
    Deferred revenue expenditure ("DRE")                      0.0        0.0      0.0        0.0       0.0   0.0   0.0
    IBAs                                                      0.0        0.0      0.0        0.0       0.0   0.0   0.0
                                                              0.0        0.0      0.0        0.0       0.0   0.0   0.0

  Assumptions made in preparing the above (cells will wrap text where required)
High level Forecast Business Plan
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DNO (enter name)
RAV calculation adjustments
 RAV calculation adjustments
                                                                                                     DPCR4
 For the regulatory financial year ending 31 March                                              2008-09 2009-10
                                                                                                  £m       £m

   Total Activity costs before any reallocations
     Distribution business -typical costs
          Direct capex (Load & Non-load)
          Network operating costs (e.g. Direct opex, faults)
          Non-operational capex
          Indirect costs (Engineering indirects and Business Support costs)
     Distribution business -atypical costs
          Direct capex (Load & Non-load)
          Network operating costs (e.g. Direct opex, faults)
          Non-operational capex
          Indirect costs (Engineering indirects and Business Support costs)
     Relevant Excluded Services costs (including allocated pensions and margins)
      ES1 EHV
      ES3 Revenue Protection
      ES4 Charging Statement
    ES7A Top Up and Standby
    ES7B Security
      ES8 Reactive Power Charges
      ES9 Other Excluded Services
     Other Excluded Services
      ES5 Non Trading Rechargeables
      ES6 Non Trading Rechargeables
     ES10 Metering Excluded Services

     De Minimis activity costs
     Out of area networks costs
                                                                                        Total         -       -

   Costs inside scope of DPCR4 allowances (memo)
     Guaranteed standard of performance compensation payments
     Ex-gratia compensation payments
     Bad debt expense (net of recoveries)
                                                      Total Non-Activity Based Costs                  -       -

   Proceeds of sale of assets and scrap - cash
     Cash proceeds received on sale of:
          Operational assets (-ve)
          Sales of scrap (-ve)
          Non-operational assets (-ve)
                                                                                        Total         -       -

   Salary sacrifice schemes (including flexible benefit schemes)
   Salary element sacrificed by employee(-ve)
     Distribution business
           Direct capex (Load & Non-load)
           Network operating costs (e.g. Direct opex, faults)
           Non-operational capex
           Indirect costs (Engineering indirects and Business Support costs)
     All non-distribution activities
                                                                                        Total         -       -
   Additional employer pension contributions (+ve)
     Distribution business
           Direct capex (Load & Non-load)
           Network operating costs (e.g. Direct opex, faults)
           Non-operational capex
           Indirect costs (Engineering indirects and Business Support costs)
     All non-distribution activities
                                                                                        Total         -       -

   ERDCs & Severance
         Direct capex (Load & Non-load)
         Network operating costs (e.g. Direct opex, faults)
         Indirect costs (Engineering indirects and Business Support costs)
                                                                                                      -       -

   Undergrounding in National Parks / AONB
     Direct costs (Load & Non Load)
     Indirect costs (Engineering indirects and Business Support costs)
                                                                                        Total         -       -

   Customer contributions

   Disallowed related party margins (typical & atypical)
     Distribution business
           Direct capex (Load & Non-load)
           Network operating costs (e.g. Direct opex, faults)
           Non-operational capex
           Indirect costs (Engineering indirects and Business Support costs)
     Excluded services
     All non-distribution activities (excluding Excluded Services)
                                                                                        Total         -       -
   Other adjustments in computing RAV
     ERDCs & Severance costs
     Road occupation costs treated as logged up
           Direct capex (Load & Non-load)
           Network operating costs (e.g. Direct opex, faults)
     ESQCR costs treated as logged up
           Direct capex (Load & Non-load)
           Network operating costs (e.g. Direct opex, faults)
     Costs previously agreed with Ofgem in writing for additional security
     IFI costs (reported in operating costs in P&L)
     Fines and penalties (other than related to TMA)
     Indirects allocated to non-distribution activities (incl. Excluded Services)
     DPCR4 Direct labour cost adjustment (Indirect labour in direct activities)
     Tree cutting allocated to non-distribution activities
     Tree cutting allocated to LRE

   DPCR4 Direct labour cost adjustment (enter as negative)
     Distribution business
           Direct capex (Load & Non-load)
           Non-operational capex
           Network operating costs (e.g. Direct opex, faults)
     Transferred to Indirect costs (Engineering indirects and Business Support costs)                 -       -

   Relevant Excluded Services ("RES")(including allocated pensions and margins)
     Related party margins included in RES
     Forecast actual Excluded Services revenue
     DPCR4 Projected Excluded Services Revenue
          RES are ES1, ES3, ES4, ES7A, ES7B, ES8 and ES9
High level Forecast Business Plan
                                            Navigation - Index
DNO (enter name)
DPCR4 Regulatory asset value additions computation
DPCR4 Regulatory asset value additions computation

For the regulatory financial year ending 31 March                                                                                                 2008/09                                                                                          2009/10




                                                                                                                                                                                                                                                                      All Other non-
                                                                                                                                                    Indirect costs




                                                                                                                                                                                                                                                     Indirect costs
                                                                                                                                                                         Pension costs




                                                                                                                                                                                                                                                                      Pension costs
                                                                                                                             Non-op capex




                                                                                                                                                                                                                              Non-op capex
                                                                                                                             Direct opex &




                                                                                                                                                                                                                              Direct opex &
                                                                                                                             total faults &




                                                                                                                                                                                                                              total faults &
                                                                                                         less contribs




                                                                                                                                                                                                          less contribs
                                                                                                         Direct capex




                                                                                                                                                                                                          Direct capex
                                                                                                                                                                         Distribution




                                                                                                                                                                                                                                                                      Distribution
                                                                                                                                                                         adjustment




                                                                                                                                                                                                                                                                      adjustment
                                                                                                                                                                                             TOTAL RAV




                                                                                                                                                                                                                                                                                           TOTAL RAV
                                                                                                                                                                                             (including




                                                                                                                                                                                                                                                                                           (including
                                                                                                                                                                                             pensions)




                                                                                                                                                                                                                                                                                           pensions)
                                                                                                                                                                                             additions




                                                                                                                                                                                                                                                                                           additions
                                                                                                                                                                                                                                                                                                          Cross reference to
                                                                                          Source /                                                                                                                                                                                                         Final Proposals
                                                                                         Adjustment                                                                                                                                                                                                             ("FP")




                                                                                                                                                                         only




                                                                                                                                                                                                                                                                      only
                                                                                           factors                                                                                                                                                                                                           Appendix 1                                                                          Explanation of formulae
                                                                                             %            £'m                   £'m                 £'m                      £'m                £'m        £'m                   £'m                £'m               £'m   £'m               £'m

DISTRIBUTION ACTIVITY COSTS (TYPICAL)
                                                                                                                                                                                                                                                                                                                              total payments for Cash typicals costs from Table 2.2 row 151 (excluding Relevant Excluded Services costs below) and before allocation of directs and
    Total Distribution activities costs before any reallocations                                                         -                    -                      -                                                    -                    -                      -                                                       non-distribution activities
                                                                                                                                                                                                                                                                                                        A1.12/A1.13/A1.15/A1.18
    Less:
          Customer contributions                                                                                         -                                                                                                -                                                                                    A1.12/A1.13       deducts customer contributions
          Normal pension (employers') costs                                                                              -                    -                      -                                                    -                    -                      -                                       A1.13 / A1.45      excludes all normal pension costs reported in Table 2.2 under distribution activities
          Road occupation costs treated as logged up                                                                     -                    -                                                                           -                    -                                                                  A1.13          removes Road occupation costs treated as logged up under Special Licence condition A3
          ESQCR costs treated as logged up                                                                               -                    -                                                                           -                    -                                                                  A1.13          removes ESQCR costs treated as logged up under Special Licence condition A3 and previously agreed in writing with Ofgem
          Costs previously agreed with Ofgem in writing for additional security                                          -                                                                                                -                                                                                                      removes costs previously agreed with Ofgem in writing for additional security
          Total Undergrounding in National Parks / AONB treated as logged up                                             -                                           -                                                    -                                           -                                           A1.12          removes costs of Undergrounding in National Parks / AONB logged up by agreement between Ofgem & DNO as specified in FP Chapter 4
          IFI costs (within Network Policy inc R&D)                                                                                                                                                                                                                                                               A1.12          excludes eligible IFI expenditure under with Standard Licence Condition 51 - now separate Activity
          Fines and penalties (other than Lane rentals)                                                                                                              -                                                                                                -                                       A1.12 / A1.13      removes all other fines and penalties (excluding from Lane rentals)
          Indirects allocated to non-distribution activities (incl. Excluded Services)                                                                               -                                                                                                -                                           A1.16          removes indirect costs allocated to all non-distribution activities. Indirects allocated to Relevant excluded services are included in the RES section
          Direct labour cost adjustment (Indirect labour in direct activities)                                           -                    -                      -                                                    -                    -                      -                                           A1.18          adjusts direct Labour cost to DPCR4 basis
          Tree cutting allocated to non-distribution activities                                                                               -                                                                                                -                                                                                 removes tree cutting allocated to non-distribution activities
          Disallowed related party margins                                                                               -                    -                      -                                                    -                    -                      -                                       A1.13 / A1.19      disallows related party margins where external related party turnover does not exceed 75% threshold
          Proceeds of sale - operational assets and scrap                                                                -                                                                                                -                                                                                       A1.12          deducts all the cash proceeds of sale for operational assets and scrap
          Proceeds of sale - non-operational assets                                                                                           -                                                                                                -                                                                  A1.13          deducts all the cash proceeds of sale for non-operational assets
    Adjustment for:
          Tree cutting allocated to LRE                                                                                  -                    -                                                                           -                    -                                                                  A1.12          includes DNOs allocation of tree cutting costs to LRE

DISTRIBUTION ACTIVITY COSTS (ATYPICAL)
   Cash atypicals, utilisation of provisions & atypical accruals                                                         -                    -                      -                                                    -                    -                      -                                                       total payment of cash atypicals, utilisation of provisions & atypical accruals
                                                                                                                                                                                                                                                                                                        A1.12/A1.13/A1.15/A1.18
   Less:
         ERDCs & Severance                                                                                               -                    -                      -                                                    -                    -                      -                                           A1.48          removes ERDCs and severance costs as not allowable

                                                                                                                                                                                                                                                                                                                                 RES costs do not include NTRs, out of area networks or ES10 (other excluded metering services). There is an underlying assumption that Excluded
                                                                                                                                                                                                                                                                                                                                 services costs are equal to revenues. This block of adjustments ensures that the actual costs for RES are included then deducts actual revenue and
RELEVANT EXCLUDED SERVICES (RES) COSTS                                                                                                                                                                                                                                                                                           adds back forecast revenue. This ensures that only forecast revenue (and therefore costs) are included for RAV roll forward purposes.
   Relevant Excluded Services (including allocated pensions and margins)                                                                      -                                                                                                -                                                                  A1.13          typical cash RES costs after allocation of all indirects
   Less:
         Pension costs in RES                                                                                                #DIV/0!                                                                                          #DIV/0!                                                                         A1.13 / A1.45      excludes all normal pension costs reported for RES (direct and allocated costs)
         Related party margins allocated as part of indirects to RES                                                                          -                                                                                                -                                                              A1.13 / A1.19      removes the related party margins in RES included in allocated indirects.
         Actual Excluded Services revenue                                                                                                     -                                                                                                -                                                                  A1.13          adjustment to deduct from cost for the difference between actual and projected (at DPCR4) relevant excluded services revenue as proxy for costs
   add:
         Projected Excluded Services Revenue                                                                                                  -                                                                                                -                                                                  A1.13          adjustment to deduct from cost for the difference between actual and projected (at DPCR4) relevant excluded services revenue as proxy for costs

PENSION PAYMENTS
         Normal cash contributions - distribution business                                                                                                                               -                                                                                             -                          A1.45          brings in total payments for Cash atypicals and utilisation of provisions & atypical accruals, etc (excluding RES)
         Normal cash contributions - RES                                                                                                                                                 -                                                                                             -                          A1.45          adds in pension cash contribution for RES
         Total scheme Pension deficit cash contributions (excluding ERDCs)                                                                                                               -                                                                                             -                          A1.45          total scheme deficit cash contributions excluding ERDCs
   Less:
         Adjustment to allowed distribution deficit contributions (primary scheme)                                                                                                       -                                                                                             -                  A1.45 / FP Table 8.3   reduction to final proposals allowed percentage applied to main scheme only and second scheme for two DNOs (per FP)
         Adjustment to allowed distribution deficit contributions (other scheme)                                                                                                         -                                                                                             -                  A1.45 / FP Table 8.3   reduction to final proposals allowed percentage applied to main scheme only and second scheme for two DNOs (per FP)
         Salary sacrifice scheme impact reversal                                                                         -                    -                      -                   -                                -                    -                      -                -                                         adds back salary reduction due to salary sacrifice schemes to restore pension & labour costs to position at DPCR4

                                                    Total costs before allocations                                       -   #DIV/0!                                 -                   -                                -   #DIV/0!                                 -                -

    Adjustments to:
         Reallocate % indirects                                                            38.0%                 -                   -                             -                                              -                   -                             -                                         A1.12/ A1.13
                                                                                                                 -           #DIV/0!                               -                -                             -           #DIV/0!                               -              -
          Percentage allocation to RAV                                                                     100.0%               23.5%                          0.0%            57.7%                        100.0%               23.5%                          0.0%          57.7%                               A1.20

             Forecast RAV additions (including pensions) on a DPCR4 basis                                                -   #DIV/0!                                 -                   -   #DIV/0!                      -   #DIV/0!                                 -                -   #DIV/0!                A1.20

                 Opex (including pensions) for comparison to the allowance                                                   #DIV/0!                                                     -   #DIV/0!                          #DIV/0!                                                  -   #DIV/0!

                                                                                                                                                                                                                                                                                                                                 Note: Column "All Other non-distribution costs" is memorandum data none of which affect RAV
                                                                                                                                                                                                OK                                                                                            OK
          Proportion disallowed (from table below) of deficit contributions - primary scheme       %
                                                                                                   %
          Proportion disallowed (from table below) of deficit contributions - other scheme where appropriate

          DPCR4 Final Proposals Table 8.3 Allowed proportion of pension deficit
                                       DNO                                  Proportion                Proportion
                                                                             allowed                  disallowed
    1     CN West                                                                           64%           36%
    2     CN East                                                                           66%           34%
    3     ENW                                                                               66%           34%
    4     CE NEDL                                                                           71%           29%
    5     CE YEDL                                                                           95%           5%
    6     WPD SWales                                                                        69%           31%
    7     WPD SWest                                                                         61%           39%
    8     EDFE LPN                                                                          75%           25%
    9     EDFE SPN                                                                          68%           32%
    10    EDFE EPN                                                                         100%           0%
    11    SP Distribution                                                                   0%           100%
    12    SP Manweb                                                                         79%           21%
    13    SSE Hydro                                                                         0%           100%
    14    SSE Southern                                                                      76%           24%

				
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