DBCT Management (DBCTM) proposed to change the inflation index used to calculate outturn inflation, which is applied to the regulatory asset base (RAB) when amending the annual revenue requirement (ARR) each year.
The change to directly use the latest inflation index was initially proposed in DBCTM’s modelling draft amending access undertaking (Modelling DAAU) in September 2017. However, the proposal was not in a form the QCA could consider and as such the QCA ceased considering the Modelling DAAU.
DBCTM subsequently proposed the change via a letter. The change was suggested as an improvement over current practice, subject to the QCA’s agreement the update was consistent with the DBCT 2017 Access Undertaking.