Response to Ofgem statement regarding final price disallowance

Summary by AI ^BETAClose X

Capita plc has announced that Ofgem will disallow £11.425 million in costs for Smart DCC for the Regulatory Year 2024/2025, a reduction from the initial proposed disallowance of £30.841 million, with a £20 million disallowance for the prior year. Capita views this outcome positively, noting it aligns with estimates made for the Group's 2025 financial results and reflects process improvements and cost efficiencies. The company also confirmed that the Smart DCC contract, which supports a national smart meter network, will transition to a not-for-profit provider in the upcoming year.

Disclaimer*

11 March, 2026

Response to Ofgem statement regarding final price disallowance

Capita plc (Capita)

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.

For more information, please contact:

Investor enquiries
Helen Parris
Director of Investor Relations
Email: IRteam@capita.co.uk

Stephanie Little
Head of Investor Relations
Email: IRteam@capita.co.uk

Media enquiries
Email: media@capita.co.uk

About Capita plc

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across eight countries supporting primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day.