Ofgem is leading a programme to deliver fast, reliable 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.
In July 2015 we proposed 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 the July 2015 consultation 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
The key proposals in the July 2015 consultation were:
- 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 also took this opportunity to review the arrangements in DCC’s licence that permit it to take a prudent estimate of its allowed revenue when setting charges. We sought views on introducing a regime for a penalty interest rate regime for over charging, and the form this could take.
This consultation has now closed and we have published a statutory consultation that proposes changes to DCC’s licence. We aim to publish our decision in February 2016.