Modifications to the Smart Meter Communication Licence for transition to ex-ante cost control and other changes required for Licence closure

Consultation
  • Upcoming
  • Open
  • Closed (awaiting decision)
  • Closed (with decision)
Publication date
Closing date
Industry sector
Supply and Retail Market
Licence type
Smart Meter Communication Licence

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 interim changes to the Smart Meter Communication Licence to support our policy conclusions on transition to a new cost control regime and to help administer the final Price Control at the end of the Licence term. 

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

The Data Communications Company (DCC) manages the communications and data transfer service for smart metering. DCC operates under the Smart Meter Communication Licence (the “Licence”) which is due to expire in September 2027. We are reviewing the regulatory arrangements for DCC ahead of the Licence expiry (“DCC review”).  

In December 2024 we published a policy consultation focused on the process for determination of the Licensee’s Allowed Revenue (cost control). 

We concluded that consultation on 09 May 2025. This consultation supports the implementation of our policy conclusions. 

Our proposals

We are consulting on proposed modifications to the Smart Meter Communication Licence in four areas: 

  • Giving effect to our conclusions on the implementation of the ex-ante process for determination of DCC’s Allowed Revenue under the Successor Licence 
  • Amending the dates in respect of certain reporting requirements, including the Price Control submission, in the Licence to account for the Transfer Date  
  • Amending the Baseline Margin Adjustment and External Contract gain Share mechanisms  
  • A small number of housekeeping changes  

Why your views matter

Your feedback is valuable and will help us develop the 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 Jakub Komarek on dccregulation@ofgem.gov.uk by 6 June 2025. You can send a PDF (pdf), Word (doc) or Excel (xls) document as part of your response.