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 has now published its initial conclusions in the form of a consultation and is 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:
Introduction and summary - key points from the 2017/18 Price Control
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 remaining functionality associated with the SMETS2 programme, as well as the changes we are making to ensure we are ready to scale our business to ensure successful delivery of additional programmes
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. These include SMETS1 and OFGEM’s Switching Programme
Part 5 "Internal Costs" - an example of the information provided to Ofgem for each DCC cost centre to justify 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
We plan stakeholder facing events later this year, which will focus on the Price Control and its outcomes.