Ofgem has published its draft determination on the Data Communications Company (DCC) Price Control for Regulatory Year 2025/26, provisionally proposing to disallow costs of up to £24 million. The regulator opened the matter to stakeholder consultation, inviting further evidence and challenges to its provisional conclusions. Capita plc (CPI), which is connected to Smart DCC Limited, faces potential revenue implications as Ofgem scrutinises whether costs incurred by the DCC were economic and efficient. Investors in Capita will be watching the outcome of this consultation process closely given its possible financial consequences.

Key Points

  • Capita plc (CPI) — connected to Smart DCC Limited, the central communications body for Great Britain's smart meter network
  • Ofgem has published a draft determination provisionally proposing to disallow DCC costs of up to £24 million for Regulatory Year 2025/26
  • The draft determination was published on 10 November 2026, following an earlier consultation on the DCC Price Control submission
  • Investors should watch for stakeholder responses to the consultation and Ofgem's final determination, which could affect DCC's allowable revenues

Ofgem's Draft Determination Targets Up to £24m in DCC Costs for 2025/26

Ofgem published its draft determination on 10 November 2026, provisionally proposing to disallow costs of up to £24 million incurred by Smart DCC Limited during Regulatory Year 2025/26. This follows the regulator's earlier consultation on the DCC Price Control submission. The Price Control framework is designed to cap DCC's revenues and ensure that costs are economic and efficient. By proposing to disallow a portion of costs, Ofgem is signalling that it considers certain expenditure to fall outside those boundaries, though this remains a provisional position subject to further stakeholder input before any final decision is reached.

Smart DCC Limited's Role in Great Britain's Smart Meter Infrastructure

Smart DCC Limited serves as the central communications body responsible for managing communications and data transfer across Great Britain's smart meter network. It holds the Smart Meter Communication Licence, giving it a unique and regulated position within the country's energy infrastructure. The Price Control arrangements that govern DCC's operations are intended to protect consumers and market participants by ensuring that the revenues the company collects are proportionate to costs that meet the regulator's efficiency standards. Any disallowance of costs directly affects the revenues DCC is permitted to retain under those arrangements.

Stakeholders Invited to Challenge Ofgem's Provisional Conclusions

The draft determination opens a formal consultation window, allowing stakeholders to submit further evidence and challenge Ofgem's provisional conclusions before a final decision is made. This process is standard within Ofgem's price control framework and provides affected parties, including DCC and industry participants, with an opportunity to present additional material that could influence the regulator's final position. The announcement states that further information is available on Ofgem's official website. The outcome of this consultation could determine whether the full £24 million disallowance is confirmed, reduced, or revised in the final determination.