Reviewing smart metering costs in the default tariff cap: Decision for cap period four

Reports, plans and updates

This decision outlines how we plan to set the smart metering allowance in the Default Tariff Cap (“the Cap”) between 1 April and 30 September 2020.

In October, we published our consultation on a new methodology for the SMNCC in the Cap. We also included a proposal for a contingency allowance for Cap period four. We proposed to use this contingency allowance in the event that we could not reach a conclusion by 12 December, or if we needed to make significant changes to the methodology and consult on those proposals. We have not yet reached a conclusion about the new methodology we proposed, so we will use the contingency allowance.

In the New Year, we will inform stakeholders of our position regarding the proposed methodology for setting the SMNCC from cap period five (October 2020) and beyond.