Further consultation on restatement of 2009-10 data and closing out the DPCR4 losses incentive mechanism

Publication date
21st October 2013
Closing date
6th December 2013
Policy area

In July 2013 we published our decisions on aspects affecting the approach to restatement of losses data, and invited Distribution Network Operators to resubmit their data. Having carefully considered the data submitted and responses to our decisions, we are now setting out, for consultation, our views on the restatement of losses performance for 2009-10, and the final incentive value under the DPCR4 losses mechanism. We are seeking views on the process for recovery of these monies.

This document also contains decisions on the target to be used in the close out for DNOs with more than one target, indexation of incentives already received and the impact of data restatement on calculation of the growth term in earlier years of DPCR4.

We have been notified of a data labelling error in this consultation. In Tables 2 and 3 (pp. 28-29) SSE Hydro (SSEH) and SSE Southern (SSES) are labelled the wrong way round. To clarify, the correct figures for SSES are £66.7m (5xE) and £46.0m (PPL); for SSEH they are £24.5m (5xE) and £22.0m (PPL). The charts and figures for these two licensees are correctly labelled in Appendices 2 and 3 of the consultation and are unchanged from the November 2012 consultation.

On 22 November, WPD submitted a case for alternative normal periods to be used in the restatement of its EMID area, published as a subsidiary document. We have calculated the draft PPL terms and charts for EMID based on WPD’s additional submission as an extra tab of ‘Appendix 3: Components of PPL calculation’ (also available as a subsidiary document).

Please note that we have extended the deadline for responses to this consultation to 6 December to allow stakeholders the opportunity to fully analyse the evidence presented. However, in order to provide certainty as early as possible, where possible we would still appreciate responses by 2 December.

We have now published our decision.