DCC​ ​Price​ ​Control​ ​Consultation:​ ​Regulatory​ ​Year​ ​2016/17

DCC​ ​Price​ ​Control​ ​Consultation:​ ​Regulatory​ ​Year​ ​2016/17 246 KB

We ​broadly ​agree ​with ​the ​proposals ​Ofgem ​is ​making ​to ​push down ​on ​the ​costs ​requested ​by ​DCC. ​The ​underlying ​dynamic ​of ​this ​price ​control ​is potentially ​skewed ​against ​consumers. ​DCC ​clearly ​have ​a ​strong ​incentive ​to ​argue for ​a ​higher ​allowance, ​and ​since ​these ​costs ​would ​affect ​all ​users ​equally ​and ​be passed ​on ​to ​consumers, ​they ​will ​have ​a ​minimal ​effect ​on ​those ​users’ competitiveness. ​This ​removes ​any ​clear ​counterweight ​of ​advocacy ​within ​industry to ​offset ​DCC’s ​position. ​We ​would ​hope ​that ​Ofgem’s ​attitude would ​always ​be ​to ​give ​consumers ​the ​benefit ​of ​the ​doubt ​where ​any ​doubt ​in ​this price ​control ​exists. We ​are ​concerned ​by ​the ​increase ​in ​external ​and ​internal ​costs ​which consumers ​ultimately ​pay.