TDIS Calculation Issue

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19/10/2023
TDIS Calculation Issue
Statement of a calculation error for Scheme Year 2022/23
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Following the closure of the TDIS 2022/23 Scheme Year (with the query window ending 21 June 2023) the Code Manager Performance Assurance team performed the calculation of debits and credits under the scheme, and these were communicated to Supplier Contract Managers on 22 August 2023. For those Parties with debits (payable into the scheme) invoices were subsequently issued by RECCo Finance in September 2023.
 
The Code Manager Performance Assurance team has since identified an error in the calculation of debits/credits for the 2022/23 Theft Year that impacts the debits/credits communicated to in-scope parties in August 2023. Note that the impact is limited to those Parties already subject to debits/credits under the scheme, all of whom have been contacted directly with the details of the individual impacts. Unfortunately an incorrect version of the total scheme pot value data was utilised – this therefore impacts all parties taking part in the scheme.
 
At a high level the error and associated impacts are:
  • The pot value for the electricity domestic pot was understated and the pot value for the electricity non-domestic pot was overstated – this has caused domestic debits/credits to be calculated lower than they should be and non-domestic debits/credits to be higher. 
  • The pot value of both gas incentive pots is slightly overstated, resulting in both debit and credit values being higher than should be the case.
The underlying cause of this issue was a human error when recording the final pot values calculated in March 2022 which was subsequently not identified during the verification of the calculation prior to publication in August 2023. We recognise this is an extremely regrettable situation and offer our sincere apologies to all affected Parties. 
 
RECCo and the Code Manager Performance Assurance Team will be undertaking a detailed lessons learnt review of the processes used to calculate debits and credits in order to identify additional controls that can be put in place to avoid reoccurrence of this or similar issues in the future. We have informed the PAB as the responsible committee of this issue. We will share a copy of the Lessons Learnt report and proposed actions with Parties and the PAB once this has been completed.
 
Affected parties are impacted differently depending on their position and performance under the scheme, with three potential outcomes:
  • Payments due from parties were understated and an additional payment is due into the scheme.
  • Payments due from parties were overstated and a credit note is required.
  • Payments due to parties were incorrectly calculated, with a mixture of under and over statement of the amounts due.
The Code Manager Performance Assurance Team is working with RECCo to adjust the relevant amounts and process updated invoices and payments through the normal RECCo invoicing processes. Supplementary invoices to those parties whose original invoices were understated and are required to make a further contribution into the scheme pot will be issued prior to the end of October. The only change is the application of the correct incentive scheme pot, no other changes to market share or confirmed theft data has been made.