The value proposition of the Premium Grids is to provide 24/7 reliable service.

The report considers the (re-) introduction of capacity tariffs alongside an energy tariff. It also considers the merits of Time-of-Day pricing.

It required developing an Embedded Generation solution and/or entering into a Bilateral Contract with a large generator to bridge the power supply-demand, and implement a Network Development Plan for the distribution of electricity covering the unsuppressed demand in the area.

The report considers the tariff structures to be offered to MD (Maximum Demand) customers in franchise areas that would:

• incentivise them to take supply from the network even in cases where the customer had self-generation;
• disincentivise or charge reflective costs to MD customers using the network as a backup;