ELEXON’s response to Ofgem’s call for evidence on the regulatory arrangements for the DCC

Summary

We responded to Ofgem’s Call for Evidence on the DCC licence arrangements. In our response, we express our view that it would beneficial to see the DCC/SEC arrangements encompassed within an independent Market Operator, as laid out in our recent Policy View on Reforming the System Operator roles and Code Arrangements. In addition, we suggest that Ofgem undertake a review of the way that the DCC arrangements are funded, noting that the returns allowed for the DCC are greatly in excess of what is allowed for other Priced Controlled entities.

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