the number of days allowed by payment of the network charges under the – ‘Credit this must be 10 business days from the date of Support Guidelines and Methodology’, issue of the statement of charges. In this case, it is assumed that 10 business days equates to 14 days. The Invoice Preparation and Payment Lag will therefore be 28 days (14 days plus 14 days). assumptions, the Group A on these Maximum Days Outstanding for customers can be calculated as follows: Maximum Days Outstanding = Final Customer Consumption Period/2 + Retailer Billing Period/2 + Invoice Preparation and Payment Lag. = + 30/2 + 30/2 28 = + + 15 15 28 = 58 The B is calculated Maximum Days Outstanding for Group customers as follows: Maximum Days Outstanding = Customer Consumption Period/2 + Retailer Billing Period/2 + Invoice Preparation and Payment Lag. = + 30/2 + 90/2 28 = + + 45 15 28 = 88 To determine the component for each of customer, network charge liability group the forecast for each customer is the for daily network charges multiplied by Maximum Days Outstanding the customer. For each Group A customer, this would be determined as follows: = network x Network Charge Liability daily charges Maximum Days Outstanding = x $5.00 58 = $290 For each Group B customer, this would be determined as follows: = x Network Charge Liability daily network charges Maximum Days Outstanding = x $12.00 88 = $1,056 Assuming the retailer has 20,000 A customers, the network charge liability component for that group will be $5,800,000 ($290 x 20,000).
the number of days allowed by payment of the network charges – under the ‘Credit Support Guidelines and Methodology’, this must be 10 business days from the date of issue of the statement of charges. In this case, it is assumed that 10 business days equates to 14 days. The Invoice Preparation and Payment Lag will therefore be 28 days (14 days plus 14 days). on these assumptions, the Maximum Days Outstanding for Group A customers can be calculated as follows: Maximum Days Outstanding = Final Customer Consumption Period/2 + Retailer Billing Period/2 + Invoice Preparation and Payment Lag. = 30/2 + 30/2 + 28 = 15 + 15 + 28 = 58 The Maximum Days Outstanding for Group B customers is calculated as follows: Maximum Days Outstanding = Customer Consumption Period/2 + Retailer Billing Period/2 + Invoice Preparation and Payment Lag. = 90/2 + 30/2 + 28 = 45 + 15 + 28 = 88 To determine the network charge liability component for each group of customer, the forecast daily network charges for each customer is multiplied by the Maximum Days Outstanding for the customer. For each Group A customer, this would be determined as follows: Network Charge Liability = daily network charges x Maximum Days Outstanding = $5.00 x 58 = $290 For each Group B customer, this would be determined as follows: Network Charge Liability = daily network charges x Maximum Days Outstanding = $12.00 x 88 = $1,056 Assuming the retailer has 20,000 A customers, the network charge liability component for that group will be $5,800,000 ($290 x 20,000).
UC-ERSC-110116.docx