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Efficiency Assessment

Distribution Price Control Review 5

Distribution Price Control Review 5 (DPCR5) is the current price control applicable to electricity distribution network operators
I was asked to oversee the methodology used to assess the efficiency of the Distribution Network Operators (DNOs)

Ofgem regulates the 14 monopoly regional DNOs to protect the interests of present and
future consumers. The regulator sets a price control every five years that sets the maximum
revenues that each DNO can collect from customers at a level that allows an efficient
business to finance its activities. The regulator also places incentives on DNOs to innovate and find
more efficient ways to provide an appropriate level of network capacity, security,
reliability and quality of service.
The current price control expires on 31 March 2010. This document sets out our Final
Proposals for the revenues the companies should be allowed to earn from 2010 to 2015.

Final Proposals: This document sets out in detail how Ofgem sets the cost allowances for the companies. It should
be read in conjunction with our Distribution Price Control Review Final Proposals core
document.

Methodology Paper: This document sets out and evaluates the methodology Ofgem used to undertake the efficiency analysis

Dr Melvyn Weeks












University Senior Lecturer

Research Group:
Econometrics

CV: Curriculum Vitae


Contact Details
Email: mw217@cam.ac.uk
Room: 60
Office Hours: Friday 9-10
College: Fellow of Clare College


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