Ofgem is questioning whether Capita Plc’s (LSE:CPI) Smart DCC should be allowed to recover up to £24 million of the costs it incurred running Britain’s smart meter communications network in 2025/26.
Smart DCC plans to make the case for a lower figure before the energy regulator reaches a final decision early next year.
The network carries data from more than 39.2 million smart meters across 23 million homes and small businesses.
Each year, Ofgem reviews the operator’s spending and decides how much it can recover through its charges. Smart DCC can submit more evidence during the consultation.
In last year’s review, Ofgem initially questioned £31 million of costs.
For Capita shareholders, one detail matters when reading the £24 million figure. Capita owns Smart DCC, but accounts for it separately from the group’s consolidated results.
The licensed business has since moved to a not-for-profit provider.
Ofgem expects to set the final amount for the period under review in the first quarter of 2027.
Meanwhile, in London, Capita shares strengthened, climbing 1.9% and trading at 269.5p.
