Draft Data Communications Company (DCC) Remuneration Policy Guidance

Details of outcome

We are publishing our decision on the DCC Remuneration Policy guidance. The final guidance sets out our expectations for how DCC2 must develop, submit and apply its Remuneration Policy under the Smart Meter Communication Licence.  

The guidance is intended to ensure that relevant discretionary remuneration for Senior Managers is clearly linked to DCC2’s performance and the delivery of outcomes that matter to DCC users and energy consumers. It retains a four-pillar framework covering Customer Satisfaction, System Performance, Business Plan Quality and Business Plan Delivery.  

Respondents broadly supported linking remuneration to delivery, customer outcomes, system performance, accountability and value for money. In response to the consultation, we have made targeted changes and clarifications. 

These include clarifying the Senior Managers in scope, how enabling or corporate measures may be included within the four pillars, DCC2’s flexibility over measures and weightings, and the requirements for the methodology used to set targets, assess performance and determine remuneration outcomes.  

The final guidance also clarifies the transitional approach for the first year of the new arrangements. DCC2 must submit its draft Remuneration Policy to Ofgem by 14 October 2026.

Read the final Data Communications Company (DCC) remuneration policy guidance.

Read the full outcome 

Original consultation

We are consulting on guidance for the preparation and operation of the Data Communications Company (DCC) Remuneration Policy for Senior Managers.

The proposed guidance is intended to strengthen the link between remuneration and performance under the DCC2 regulatory framework. It seeks to ensure that pay outcomes are clearly evidenced, aligned to delivery. It also ensures that they support:

• accountability
• transparency
• value for money for energy consumers

The consultation focuses on four core areas:

• the overall objectives and design of the guidance
• how remuneration should reflect organisational and individual performance
• the proposed performance assessment framework, based on four pillars
• reporting requirements and transitional arrangements to support implementation

The guidance sits alongside the wider DCC2 framework. This includes arrangements for operational performance, business planning and cost control. It is issued under Condition 20 of the Smart Meter Communication Licence.   

Who should respond

• Smart DCC (DCC1)  
• DCC2 and Energy industry code bodies
• Energy suppliers
• Network operators
• Other users of DCC services
• Consumer groups and consumer representatives