MP071 Second-Comer Charging

Proposer Sasha Townsend
Lead Analyst SEC Change
Date raised 29/03/2019
Implementation date 29/11/2019
Latest update This modification was implemented on 29 November 2019 as part of the November 2019 SEC Release.

What is the issue?

Problem Statement

The Explicit Charges Second-Comer Contributions requirement (SEC Section K7.8-7.11) enables a cost allocation mechanism for shared costs with respect to four specific Explicit Charge metrics: 'Low Volume (LV) Gateway Connection'; 'High Volume (HV) Gateway Connection'; 'Elective Service Evaluation'; and 'Parse & Correlate (P&C) support'. The requirement is prescribed using cost and temporal thresholds, to determine the contribution due by a second (or more) DCC User to an earlier DCC User that was offered one of these services, to rebate an element of the shared cost.

DCC is required to assess Second-Comer Contributions and the rebate of ‘relevant costs’ to an initial contributor, when a subsequent person uses the same services and is made an offer to recover shared costs. The quotes to the Users shall be both with the condition of all parties accepting a shared metric.

DCC believes this requirement is still relevant and feasible with respect to the Elective Service Evaluation and P&C support metrics; as there are certainly opportunities to align investigative work during an Elective Service Evaluation, or have a shared classroom scenario for P&C support/consultancy. However, the nature of the solution for providing both a LV Gateway Connection or a HV Gateway Connection is such that there are no common costs and thus no scope for cost sharing. Thus, the current onboarding process for a DCC User has inefficient and unnecessary complexity associated with a check related to shared costs for either a LV Gateway Connection or a HV Gateway Connection.

The full Draft Proposal can be found here.

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What is the solution?

After consideration of industry comments and discussions with the DCC, the Proposer believes that the most effective solution is to remove the specific requirements in SEC Section K which relate to assessing the second-comer charges for HV and LV Gateway Connections.
The result of this modification will be an accurate reflection of the ‘Second-Comer’ charging system.

Who is impacted?

This modification will have no impact on SEC Parties.

What SEC documents are affected?

SEC Section K 'Charging Methodology'

Modification documents

MP071 Legal Text
MP071 Modification Report
MP071 Change Board Vote
MP071 Modification Report Consultation responses
MP071 Modification Report Consultation
DP071 Comments
DP071 Problem Statement v0.1
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