Price Cap - Decision on PPM SMNCC allowance


In April 2021, we issued our third consultation in a series of three on reviewing smart metering costs in the default tariff cap. This included an addendum to our consultation published on 1 June 2021. We have now considered stakeholders’ responses and are publishing our decision.

This decision sets out how we have decided to update the PPM non-pass-through Smart Metering Net Cost Change allowance (“SMNCC”) in the default tariff cap for cap period seven. The PPM SMNCC accounts for the net impact of the PPM smart meter rollout on suppliers’ efficient operating costs.

Update 05/08 13:30: We have updated the decision document to clarify the changes in the Annex 5 model in Appendix 1, and to correct a typo, as well as published a correction to the values in the subsidiary model. This update does not form a change to our decision.