Decision: approach to the third cap period for the default tariff cap


Publication date

Industry sector

Supply and Retail Market

On 18 June 2019, we issued a consultation outlining our approach to setting the Capacity Market (CM) and Smart Metering Net Cost Change (SMNCC) allowance of the default tariff cap. We set out proposals for the two allowances specifically for cap period three (October 2019 – March 2020) and gave suppliers an opportunity to comment.

This document sets out our decision. This affects the level of the cap for the third cap period, which we have published today.

We have decided to use our current non-pass-through model to set the SMNCC and to allow a full CM allowance for the third cap period.