Audit of the Data Communications Company (DCC)

Description

The Data Communications Company (DCC) is the central communications body licensed to provide the communications, data transfer and management required to support smart metering. DCC was appointed by using an outsourced service model, to manage contracted smart metering service providers. As such, external costs compose the largest proportion of DCC’s costs, and it is critical that these contracts are entered into, managed and closed out effectively and efficiently. Each year, the Authority scrutinises DCC’s incurred and forecast costs through the annual Price Control process to determine whether these costs are economic and efficient. Alongside the cost assessment, DCC also faces financial incentives under the Operational Performance Regime (OPR) Lot 1: The Data Communications Company (DCC) is the central communications body licensed to provide the communications, data transfer and management required to support smart metering. DCC was appointed by using an outsourced service model, to manage contracted smart metering service providers. As such, external costs compose the largest proportion of DCC’s costs, and it is critical that these contracts are entered into, managed and closed out effectively and efficiently. Each year, Ofgem scrutinises DCC’s incurred and forecast costs through the annual Price Control process to determine whether these costs are economic and efficient. Alongside the cost assessment, DCC also faces financial incentives under the Operational Performance Regime (OPR)