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Each year, Ofgem scrutinises the money that DCC has spent and what has been delivered through the so-called "Price Control" process. This takes the form of a detailed submission which DCC is required to make by 31st July each year. This is then followed up by Ofgem through further questions, visits to DCC and audits.
Ofgem will soon publish initial conclusions in the form of a consultation and will be seeking comments from interested parties.
There are parts of the submission which DCC cannot publish for reasons of commercial confidentiality and due to legal constraints imposed by the Utilities Act. However, we have agreed to make the following parts available to assist stakeholders to answer the consultation questions, and also to give transparency to the depth of scrutiny that DCC's activities are subject to:
Part 0 "Executive Summary" – an overview of the RY18/19 Price Control Submission
Part 1 "Ensuring Value for Money" - a description of DCC's governance, commercial, risk management processes, together with information on various information systems
Part 2 "Business Transformation & Delivery" – sets out the progress we have made in delivering the R2.0 code and DBCH programme; an overview of changes to the SMETS1 programme; and improvements to processes & systems to improve the customer experience as DCC grows and matures.
Part 3 "External Costs" - provides both narrative and the necessary justification for costs incurred by our External Service Providers
Part 4 "Services in Development" - describes the additional capability which DCC has been developing, over and above the core SMETS2 smart metering service to either enhance existing services or develop new services.
Part 5a "Internal Costs - Resource" - an example of the information provided to Ofgem for each DCC cost centre to justify resource internal costs
Part 5b "Internal Costs – Non-Resource" - an example of the information provided to Ofgem for each DCC cost centre to justify non-resource internal costs
Application for a baseline margin adjustment - DCC's application for an increase in the value of margin to reflect the greater level of activity required of DCC