Default tariff cap: approach to the third cap period

Publication date
18th June 2019
Closing date
16th July 2019
Policy areas

We update the level of the default tariff cap (‘the cap’) every six months. The third cap period will run between 1 October 2019 and 31 March 2020. We must publish the level for the third cap period by 7 August 2019.

The licence describes the methodology we use for updating the cap. However, there are two elements where we need to determine our approach for this cap period. These are the allowance for the net costs of the smart meter rollout, and the allowance for the costs of the Capacity Market (CM).

This consultation sets out our proposals for these specific allowances, and provides stakeholders with an opportunity to comment. We are not consulting on other allowances within the cap, as there is a settled approach to take in those areas.

This consultation relates solely to the third cap period. We will publish consultations relating to these allowances for subsequent cap periods later in the year.