Decision on margin and incentives for DCC's role within the Design, Build and Test Phase of the Switching Programme
Decision
Publication date
Company
Industry sector
- Supply and Retail Market
- Distribution Network
On 16 October 2018 we launched a consultation seeking views on our proposed regulation and governance changes for the Switching Programme, including on the proposed margin and incentives framework for DCC's role within the Design, Build and Test (DBT) Phase of the Switching Programme.
The consultation asked for views on the performance and incentives framework that should be used to place DCC’s margin at risk during the DBT Phase. It sought input into the mechanics of the incentives framework, and the inclusion of a recovery mechanism and discretionary milestone. This document sets out the decisions, and reason for them, in relation to how margin is placed at risk in relation to the timely delivery of incentivised Delivery Milestones to agreed quality, and the wider incentives framework (including the recovery mechanism and discretionary milestone) that supports this.
Alongside this document we have published our Direction on DCC’s margin and incentives for DCC's role within the Design, Build and Test Phase of the Switching Programme. We have also published two guidance documents on the Discretionary Recovery Mechanism (DRM) and the Discretionary Data Reward (DDR).
We received 39 responses on this consultation. The non-confidential responses are published on the consultation page (linked above right).