FCP

Forward Cost Pricing (FCP) is one of two methodologies used to calculate site-specific EDCM tariffs for Extra High Voltage connections. It's defined in DCUSA Schedule 17 and focuses on the forward-looking costs of accommodating demand at each network location.

How FCP works: FCP calculates charges based on:

• Projected network load growth in the area
• Expected reinforcement costs
• The site's contribution to network investment needs
• Location-specific factors from the DNO's network model

FCP vs LRIC:

Which DNOs use which: Different DNOs may use FCP, LRIC, or a combination. The choice affects how charges are calculated but both aim to produce cost-reflective, location-specific tariffs.

Why it matters: Understanding whether your DNO uses FCP or LRIC can help explain why your EDCM charges differ from similar sites in other regions. The methodology affects how network costs are attributed to individual sites.