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Why implement smart meters if you aren't going to couple that to billing in arrears?
Part of the argument for SM is that they ensure accurate readings. So with accurate readings, why are they using estimates and flat rate DD?
They know what I have used, bill me accordingly. That is how every other bill I have tends to work (phone, pay TV, credit cards, etc.) It's not hard.
Their argument is that they want to keep your DDs roughly level throughout the year, so people don't get a shock in the winter when they start using 3x as much energy.
Of course, their calculations aren't perfect and so they accidentally end up sitting on millions.