[holding answer 25 March 2008]: Each unmetered supply operator (in this context, the electricity distributor or DNO) is obliged to prepare a use of system charging methodology approved by Ofgem which is designed to achieve a number of relevant objectives as set out in their licence. These include an obligation to review the Use of System charging methodology at least once a year and have a methodology that takes account of developments in the licensee's distribution business.
Ofgem would expect a DNO to ensure that its methodology takes account of developments in its distribution business and DNOs should be made aware of the results of any small scale trials of low-energy street lighting which may result in changes to a local authority's inventory. It is for the DNO and local authorities concerned to work together and a DNO to assess whether or not, as a result of such trials, a change is required to its Use of System methodology or Use of System charges. This would be a matter that the DNO would generally discuss with Ofgem.