Ofgem consults on approach to reviewing SMNCC allowances

Article summary

Ofgem has launched a consultation on the approach to reviewing and updating the Smart Metering Net Cost Change (SMNCC) allowances. Ofgem's proposes to pause annual SMNCC methodology reviews and make annual updates to a pre-defined list of inputs used in the modelling of smart metering costs. A 12 months' worth of final non-pass-through SMNCC values would still be published in August each year, but the publication of provisional values for cap periods beyond the period of October–September would cease, reflecting the removal of a fixed end date to the cap. Ofgem also proposes to extend the functionality of the non-pass-through SMNCC model to 2030, as well as spreading advanced payments across a rolling 12-month period. The deadline for response is 23 December 2022.