This consultation sets out details of our proposed approach to the reconciliations that will be required during, and at the end of, the 2020-25 price control period. It provides clarity on:
- how we will make changes to companies’ allowed revenue and/or Regulatory Capital Value (RCV);
- which price controls are potentially affected; and
- when and how we will administer the process.
Our approach to reconciliation of price controls at the 2019 price review (PR19) is a significant evolution of our approach at the 2014 price review reflecting a further development in how we undertake reconciliations, through:
- additional and better targeted reconciliations, to ensure companies’ allowed revenues are appropriate; and
- more in-period reconciliations to ensure changes to allowed revenue are undertaken in a more timely way.
How to respond
We welcome your comments on our reconciliation rulebook by 29 April 2020. This includes:
- the contents of the PR19 Reconciliation Rulebook consultation – proposed approach and policy;
- the contents of the PR19 reconciliation rulebook consultation – reconciliation model guidance document which has further details of each model and guidance; and
- the associated draft models