DPCR4 Losses Review

The DPCR4 price controls for the distribution of electricity included incentives for the management of losses. These incentives define losses as the difference between the electricity that is measured entering the network, and that measured exiting. Challenges in making this calculation included:

Different companies adopting differing approaches to the measurement and reporting of losses; and
Data used to measure the energy consumed by small (e.g. domestic) customers changing significantly, potentially masking changes in the underlying level of losses.

We worked with Ofgem to provide assurance of the data provided by Distribution Network Operators (DNOs) on the measured level of losses on their networks and, where possible, reconciling this with data that is generally available on losses by network.

A copy of our report is available on the Ofgem website using the following link:

DPCR4 Losses Incentive Closeout Report

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