Draft new Smart Meter Communication Licence
- Publication type:
- Consultation
- Publication date:
- Last updated:
- Closed date:
- Status:
- Closed (with decision)
- Topic:
- Metering
- Subtopic:
- Data Communications Company (DCC),
- Smart meters
Related links
- DCC review: Phase 1 Decision
- DCC Review Phase 2: Governance and Centralised Registration Service arrangements
- DCC Review Phase 2: Centralised Registration Service arrangements - decision
- DCC Review Phase 2: Governance arrangements - conclusions
- DCC Review Phase 2: Determination of Allowed Revenue
- Modifications to the Smart Meter Communication Licence for transition to ex-ante cost control and other changes required for licence closure: decision
- Regulatory Instructions and Guidance (Successor Licensee)
- DCC Review Phase 2: Objectives, operational model and future role of DCC
- Smart Meter Communication Licence tender
We are seeking views on the draft Smart Meter Communication Licence for the Successor Licensee.
Details of outcome
This document sets out our decision on the final version of the Successor Smart Meter Communication Licence (SMCL) following a consultation published on 18 September 2025.
Following the completion of a competitive tender process, the SMCL was awarded to the DCC2 Ltd, a wholly owned subsidiary of the Smart Energy Code Company (SECCo) Ltd, on 14 April 2026.
The Licence will run for an initial fixed term of six (6) years from the First Transfer Date (currently designated to occur on 2 November 2026), but Ofgem may extend it further, subject to certain conditions being met.
Read the full outcome
Read the new licence
Next steps
The grant of the licence and this decision conclude Phase 3 (Tender process for a Successor Licensee) of the DCC review programme.
Phase 4 (Business Handover) is now underway and the new licensee is expected to start operating in full from November 2026.
Original consultation
Consultation description
The new Licence reflects decisions from the DCC Review, including introducing a not-for-profit model, an ex-ante cost control regime and independent governance arrangements.
The Licence sets the mandate and operating scope for the Successor Licensee, covering how services are procured and delivered, and how performance is monitored and reported. It introduces new requirements based on consultation feedback and updates or clarifies conditions from the previous Licence.
What we’re looking for
We welcome views on whether the draft Licence is clear and aligns with our policy decisions.
We would like views from people with an interest in smart metering. We particularly welcome responses from potential Applicants for the Licence and DCC customers, including energy suppliers, distribution network operators, consumer groups and other current or potential future users of the DCC network.
Responses will inform the final drafting of the Licence and the regulatory framework that will govern DCC’s operations from 2027 onwards.
Consultation stages
Stage 1 Consultation open: 18 September 2025
Stage 2 Consultation closes: 7 November 2025
Stage 3 Responses reviewed and published: December 2025
Stage 4 Consultation outcome, decision and final licence: April 2026
Subsidiary documents
Related links
- DCC review: Phase 1 Decision
- DCC Review Phase 2: Governance and Centralised Registration Service arrangements
- DCC Review Phase 2: Centralised Registration Service arrangements - decision
- DCC Review Phase 2: Governance arrangements - conclusions
- DCC Review Phase 2: Determination of Allowed Revenue
- Modifications to the Smart Meter Communication Licence for transition to ex-ante cost control and other changes required for licence closure: decision
- Regulatory Instructions and Guidance (Successor Licensee)
- DCC Review Phase 2: Objectives, operational model and future role of DCC
- Smart Meter Communication Licence tender
All updates
1 May 2026 published decision, consultation responses, direction, notice of licence award and new licence.