Response to Ofgem statement regarding final price disallowance
Ofgem disallowed £11.425m of Smart DCC costs for 2024/2025, down from £30.841m initially proposed.
vs expectations: in line
- Final price disallowance 2024/2025 £11.425m
- Initial proposed disallowance 2024/2025 £30.841m
- Reduction from initial proposal £19.596m
- Final disallowance 2023/2024 £20m
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Capita notes today’s announcement that Ofgem has concluded it will disallow costs incurred by Smart Data Communications Company (Smart DCC)1 of £11.425m for the Regulatory Year 2024/2025, a reduction of £19.596m from the initial proposed disallowance of £30.841m. For the Regulatory Year 2023/2024 the final disallowance was £20m.
The price disallowance forms part of the usual regulatory framework governing the Smart DCC contract and a level of disallowance is anticipated by Capita as part of this framework.
Capita is pleased to see this reduction, following the consultation period and the work completed to drive process improvements and ongoing cost efficiencies.
Since the licence inception, Capita has put in place and built a significant national network enabling smart meter monitoring. As previously announced, this contract will be transitioned to a not-for-profit service provider in the coming year.
This outcome was broadly in line with the estimates made in preparation of the Group’s 2025 financial results, announced on 10 March 2026.
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.