Response to Ofgem statement regarding price consultation
Ofgem proposes to disallow £31.03m of Smart DCC costs for FY 2024/2025, following £25m disallowance in prior year.
- Proposed cost disallowance FY 2024/2025 £31.03m
- Prior year disallowance FY 2023/2024 approximately £25m
Select text to share a quote on X · sign in to keep highlights & notes in your CPI notes
Capita plc notes today’s announcement that Ofgem is consulting on a proposal to disallow costs incurred by Smart Data Communications Company (Smart DCC)1 of £31.03m for the Regulatory Year 2024/2025. For the Regulatory Year 2023/2024 the draft disallowance was approximately £25m.
Ofgem’s draft determination forms part of the usual regulatory framework governing the Smart DCC contract. While some level of disallowance has historically been seen, Capita is disappointed with the scale and retrospective nature of the proposed price disallowance outlined today.
Smart DCC will engage constructively with Ofgem during the consultation period to seek a reduction to the level of disallowed costs, as in previous years, ahead of the final price determination in February 2026. Capita will continue to assess the potential financial impact on Capita and will update the market as appropriate.
Smart DCC remains committed to operating Britain’s smart meter network efficiently and to playing its part in addressing the energy affordability challenges across Great Britain.
1Smart DCC is a wholly-owned subsidiary of the Group which is not consolidated into the Group’s financial statements. For further details see note 4.7 of the Group’s 2024 Annual Report and Accounts.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.