Default tariff cap: January 2020 update letter

We intend to consult on three significant potential modifications to how we calculate the default tariff cap. Those are: the non-pass-through Smart Metering Net Cost Change (SMNCC) allowance; reassessing the wholesale allowance in the first cap period, and making adjustment that we consider appropriate; and preparing the Cap for prepayment customers with default tariffs, upon expiry of the PPM cap. We intend to publish statutory consultation in mid-May 2020, with decision at the end of July 2020, with effect from cap period five (1 October 2020 to 31 March 2021)