You are currently in: Home > Your Challenges > Producing compliant DPCR5 DLIM returns

Producing compliant DPCR5 DLIM returns

Under the Distribution Loss Incentive Scheme (DLIM), Ofgem requires DNOs to determine various components of energy flowing into and out of their networks in accordance with their Regulatory Instructions and Guidance (RIGs).

The RIGs necessitate that large volumes of data are obtained from ELEXON’s BSC agents and from Supplier agents and are processed in accordance with a set of rules. Ofgem requires compliance with the RIGs and reserves the right to undertake audits to verify this.

At Engage we understand in detail the relevant data, flows and aggregation rules; and the different types of flows in and out of the network and how they should be processed. This allows us to provide DNOs with assurance that the processes and systems they have in place, result in compliant regulatory returns.

We load the large volume of Central Volume Allocation (CVA) data and Supplier Volume Allocation data (SVA) data into our systems along with the aggregation rules for the network and repeat the RIGs calculation as an independent check against the DNO calculation.

This allows differences to be reconciled and any errors or misinterpretations to be identified and resolved prior to the regulatory return being submitted. This avoids intrusive regulatory scrutiny and potential penalties.