Final Proposals on DCC’s role in developing a Centralised Registration Service and penalty interest proposals

Publication date
17th December 2015
Closing date
22nd January 2016
Policy areas
Status

Ofgem is leading a programme to deliver reliable and fast switching on a new Central Registration Service (CRS). DCC will have a crucial role in developing the new registration and switching arrangements, including the procurement of the CRS.

We propose changes to DCC’s licence to establish its role in supporting the development of the new switching arrangements, including how this activity would be funded.

We want to ensure that DCC is appropriately funded and has clear obligations that describe its role in supporting the Switching Programme. This will also ensure that it is not impeded in meeting its smart meter obligations.

The scope of the licence changes in this statutory consultation, in relation to Ofgem’s Switching Programme, are limited to those that are required for DCC to support the development of the design for the CRS, including the new switching arrangements, as well as procuring the Relevant Service Capability to deliver the CRS. We may amend the licence further as appropriate to cover the delivery of the CRS and its live operation.

Summary of our proposals on switching

We welcome views on our proposed changes to DCC’s licence, which include:

  • New obligations on DCC to procure the CRS and contribute to its design, including the new switching arrangements
  • Allowing DCC to recover the economic and efficient costs it incurs for participating in this transitional phase through the existing ex post price control framework.
  • Recovery of costs through the existing charging methodology.
  • Including the preparation of CRS as a new category of Mandatory Business Service.

Penalty interest proposals

In addition to the proposals on switching, we have taken this opportunity to review the licence requirements for DCC to prudently estimate its allowed revenue when setting charges, and to take all reasonable steps to secure that its regulated revenue does not exceed that prudent estimate.

We set out our proposals on introducing a penalty interest rate regime for overcharging, and the form this could take.

Next steps

We welcome your views on our proposed changes to DCC’s licence, and will consider them when we take our decision. Please send responses to switchingprogramme@ofgem.gov.uk by 22 January 2016. We aim to publish a decision in February 2016.