As a monopoly, the Data Communications Company (DCC) needs incentives in lieu of competitive pressure to ensure it efficiently manages its costs whilst delivering an appropriate quality of service. While the annual price control provides an incentive for DCC to manage costs, the Operational Performance Regime (OPR) provides financial incentives regarding quality of service.
There is concern amongst DCC customers, BEIS and Ofgem that the current Operational Performance Regime (OPR) does not incentivise DCC effectively. As SMETS2 meters are rolled out and SMETS1 meters are enrolled, the number of meters which are dependent on DCC are increasing. Therefore, it is vital that DCC is incentivised appropriately to ensure it is operating effectively and delivering better outcomes for customers. This working paper explores ideas on how to amend the current OPR.
We welcome stakeholders’ views on the ideas discussed in this working paper to feed into our policy design process in advance of the consultation in the spring.