DCC Review Phase 2: Determination of Allowed Revenue

We are reviewing the regulatory framework for the Data Communications Company (DCC). This is to put in place new arrangements following the expiry of the Smart Meter Communication Licence in 2027. This consultation focuses on the design of the future cost control arrangements.

Who should respond

We want to hear views from anyone who has an interest in smart metering. We welcome responses from Data Communications Company (DCC) customers, include including energy suppliers, distribution network operators, customer groups and other current or potential future users of the DCC network.

Background

DCC is responsible for operating a secure national communications network for smart metering in Great Britain (England, Scotland and Wales). It currently operates under the Smart Meter Communication Licence. We are reviewing the licence arrangements.

Our progress

The first scoping phase of our review focused on forming the principles and desired outcomes the new regulatory model. It ended in August 2023. 

As part of Phase 2, we have been developing detailed design proposals in 3 areas:

• governance
• cost control
• future role of DCC

Our proposals

We are consulting on developing a new design for an ex-ante cost control framework. This will be implemented for DCC under the Successor Licence. We are also proposing a transition towards ex-ante business planning under the current licence.

Why your views matter

Your feedback is valuable and will help us develop the future regulation for DDC. Your views on this consultation will help shape the future DCC cost control framework.

How to respond

Please send your feedback to dccregulation@ofgem.gov.uk by 6 February 2025. You can send a PDF (pdf), Word (doc) or Excel (xls) document as part of your response.

We also have an online event on 21 January 2025 explaining our proposals in more detail, with a focus on setting up a new Customer Challenge Group. Register your interest by emailing us.