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Revenue & Margin Assurance Maximising Allowable Income

We have provided analysis and advice on gross volume correction to Distribution Network Operators. This involved analysing EAC/AA settlement data for the network operators, in support of demonstrating that adjustments outside of DNO control have impacted materially reported losses for the DRR4 period for the purposes of determining allowable revenue.

Our RAMA service to energy Network Operators maximises income through effective engagement with the regulatory performance based method of setting allowable income. This includes identifying issues with the data upon which regulatory incentive schemes are based and facilitating its correction and assurance in related regulatory reporting. It also includes support during price control reviews and effective tendering for low carbon network fund innovation incentives as well as readiness for the new RIIO based price controls.

Ofgem's electricity distribution loss incentive scheme is based on Settlement data, over which Distribution Network Operators (DNOs) have limited control. Issues with the quality of this data can have a significant impact on the associated rewards and penalties. Our RAMA service identifies issues with this data so that it can be corrected before it is used in the scheme. In addition, our engagement with stakeholders from energy Suppliers ensures a holistic approach to issue resolution.

Several of the incentive schemes require energy Network Operators to provide Ofgem with regulatory returns. It is vital that these are correct as penalties can apply if they are not. Our RAMA service provides independent assurance that these returns are correct.

Our services are underpinned by established systems and processes that take in industry flows, and use rule-based algorithms, established from our industry knowledge, to identify issues that need correcting or investigating. These systems also provide independent calculations of parameters required for related regulatory returns. 

 

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