In May 2022, we issued our final consultation on the 2022 annual review of the Smart Metering Net Cost Change allowance (SMNCC) for credit and prepayment meters in the default tariff cap. The SMNCC accounts 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 publication, we have set out how we will update the non-pass-through SMNCC in the default tariff cap for cap period nine and beyond. The SMNCC allowances for cap periods beyond cap period ten are potentially subject to revision through subsequent annual reviews.