DCC Price Control Consultation: Regulatory Year 2016/17
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.