Ofgem is proposing to introduce new customer service performance incentives for the Data Communications Company (DCC).
The proposals were published as part of a consultation in December.
DCC is responsible for managing the smart meter network, including the transfer of data, and for delivering the central switching service which will be a fundamental part of faster energy switching.
The company’s performance is measured against a set of metrics referred to as the operational performance regime (OPR) that are used to determine its revenues. Ofgem says it is “concerned” that the current OPR may not be reflective of customer experiences.
The regulator believes there is scope to improve the regime, which currently covers operational performance and delivery, by creating additional incentives for good customer service.
In its response to Ofgem’s proposals, DCC said it welcomed the move to initiate a review of the regime and said that feedback from across industry indicated the existing metrics “may not be providing the most effective incentives to DCC” and by extension “does not represent the best interests of our customers in terms of requirements and priorities”.
“We agree with the objective of optimising the regime’s metrics whilst maintaining the intent of OPR incentivising DCC to provide a quality standard service for its customers”, it added.