Introduction: As a result of increased penetration of Distributed Generation (DG), with their highly variable output profiles, there is a need for the development of a new fair and equitable methodology for the allocation of losses to both generation and demand customers.

Objectives: The development of this approach will enable UU to allocate losses to generators more accurately, which will be crucial in complying with the licence obligations and optimising UU’s overall performance against the proposed Ofgem loss incentive. The benefits of reducing the losses on the EHV networks by 0.5% is estimated to be £63k pa.