PR19 Reconciliation Rulebook: Guidance Document
| Date | 02 December 2020 |
August 2021
PR19 Reconciliation Rulebook:
Guidance Document
PR19 Reconciliation Rulebook: Guidance Document
1
About this document
Our approach to price control reconciliations at PR19 is a significant evolution of our
approach at PR14. It reflects 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.
This document provides guidance about how PR19 reconciliations should be
implemented 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 RCV;
• which price controls are potentially affected; and
• when and how we will administer the process.
This document brings together the overall approach and policy
1
with more detailed
model guidance
2
. It is accompanied by a series of reconciliation models
3
which show
the practical operation of the PR19 reconciliation mechanisms.
We updated this document on 4 August 2021 – the amendments are shown in red.
Minor amendments have made in the following sections:
• 3.3 ODI performance model – explanatory text
• 3.4 In-period adjustments model – outputs and inputs tables
• 3.5 Customer measure of experience (C-MeX) - calculations table
• 3.7 Residential retail reconciliation – inputs table
• 3.8 Revenue forecasting incentive model (RFI) – explanatory text
• 3.10 Bioresources revenue reconciliation model – inputs and calculations tables
1
Our proposed approach was published in PR19 Reconciliation Rulebook consultation – proposed approach
and policy. Note that we previously consulted on matters related to the PR19 Blind Year adjustment. This
work has now concluded and we published our final decisions on 13 November 2020.
2
Our proposed approach was published in PR19 Reconciliation Rulebook consultation - reconciliation
model guidance.
3
We published draft versions of these models in March 2020 to accompany PR19 Reconciliation Rulebook
consultation – proposed approach and policy and PR19 Reconciliation Rulebook consultation –
reconciliation model guidance.
PR19 Reconciliation Rulebook: Guidance Document
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Contents
1. Introducing the PR19 reconciliation rulebook 3
2. Implementation 9
3. Details of common reconciliations 20
4. Our approach to company-specific reconciliations 190
Appendix 1: In period modelling flow 213
Appendix 2: End of period modelling flow 214
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