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Updating the allowance for smart metering costs in the default tariff cap: working paper

In August 2020 we made a decision to update the non-pass-through Smart Metering Net Cost Change allowance (“SMNCC”) in the default tariff cap. The SMNCC accounts for the net impact of the smart meter rollout on suppliers’ efficient operating costs. We also made a decision to review the SMNCC every 12 months.

This working paper is the start of the consultation process for updating the smart metering allowance in the default tariff cap in time for winter 2021-22.

If you wish to respond to this working paper, please send your views to retailpriceregulation@ofgem.gov.uk by Monday 21 December 2020.