Price Cap – February 2023 decision on approach to reviewing the SMNCC allowances
- Publication type:
- Decision
- Publication date:
- Topic:
- Energy pricing rules
- Subtopic:
- Energy price cap
- Industry sector:
- Supply and Retail Market
In November 2022, we issued a consultation on our approach to reviewing and updating the Smart Metering Net Cost Change (SMNCC) allowances for credit and prepayment meters in the default tariff cap. The SMNCC allowances account for the net impact of the smart meter rollout on suppliers’ efficient operating costs. We have now considered stakeholders’ responses and are publishing our decision.
In this decision, we set out how we will pause the practice of reviewing the SMNCC methodology annually but will continue to update the allowances to reflect new data. We also set out some changes to enable the calculation of non-pass-through SMNCC values beyond 2023.