Data and Communications Company (DCC) Price Control Final Decision
Decision
Publication date
Company
Industry sector
Supply and Retail Market
Licence type
Smart Meter Communication Licence
These are our final determinations for the DCC price control for the regulatory year 2013/14. Our decisions reflect our conclusions on the economic and efficient level of costs incurred in 2013/14 and in the cost forecasts, DCC’s performance against agreed milestones, and whether DCC met the criteria for an adjustment to its baseline margin values. It follows our assessment and consultation on DCC’s costs, revenues, and activities during its first six months of operation.
DCC has an essential role to play in the energy market. Its performance is critical to making the smart meter rollout a success and enabling suppliers to provide a good service to their customers thereafter.
It is important that DCC receives sufficient funds to play its role well. And it is equally important that we hold DCC to account for delivering high quality services. DCC must ensure these services are provided economically and efficiently as required by the price control mechanism under its Licence.
Our decision: during 2013/14 DCC did not provide enough justification for some internal costs therefore £0.100 million are ‘unacceptable costs’ under the price control conditions of the licence. We do not accept £4.036 million of costs in DCC’s forecasts. DCC failed to meet one of its implementation milestones, and there will be no adjustment to the current baseline margin values.