Smart meter rollout and the default tariff cap: working paper

Consultation
  • Upcoming
  • Open
  • Closed (awaiting decision)
  • Closed (with decision)

In August 2020, we said that we would consider whether it is in customers’ interests to maintain our current approach to the roll out profile used in our Smart Metering Net Cost Change (SMNCC) calculation, or to use a higher rollout profile than the average. The SMNCC accounts for the net impact of the smart meter rollout on suppliers’ efficient operating costs.

This working paper is another step towards updating the SMNCC allowance in the default tariff cap in time for winter 2021-22, focusing on issues relating to the rollout for smart meters in credit mode. We have published a separate working paper on the rollout for smart meters in prepayment mode. It is the second in a series of three consultations leading up to the decision in the summer.

We seek views from stakeholders on the appropriate level for the rollout profile used to set the SMNCC, as well as on the other issues covered in this paper. We are requesting responses to retailpriceregulation@ofgem.gov.uk by Tuesday 2nd March 2021.