The Data Communications Company (DCC) is required to report price control information by 31 July following the end of each regulatory year. We review the costs and must determine whether they have been economically and efficiently incurred. Any that have not been will be Unacceptable Costs under the Licence. Each July DCC can also propose an adjustment to its Baseline Margin values that are stipulated in the Licence. We assess any proposal received and determine whether or not to change the level of the margin values.
This guidance document sets out the general cost assessment process that we follow for the DCC price control. It describes our approach and the information we expect to be provided with to enable us to determine whether DCC’s costs are economic and efficient. It explains what factors we may consider in deciding whether to accept an undertaking for Unacceptable Costs, as well as the way we determine whether to adjust DCC’s Baseline Margin values.
Note that the updated Regulatory Instructions and Guidance can be found in the links at the side.