Consultation on changes to ‘Annex 3 – Methodology for determining the Network Cost Allowance’ of the Default Tariff Cap

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This letter outlines our proposed changes to the models set out in Annex 3 to standard licence condition (SLC) 28AD of the electricity and gas supply licences. This comes as a result of data inputs previously used to determine the network cost allowance changing in structure or availability. This annex calculates the network cost allowance of the default tariff cap. If we decide to make these changes, they will come into force on 1 April 2021.

If you wish to respond to this letter, please send your views to retailpriceregulation@ofgem.gov.uk by 4 January 2021.