Modifications to the Smart Meter Communication Licence for transition to ex-ante cost control and other changes required for licence closure: decision
Decision
- Publication date
- Company
- Smart DCC Limited
- Industry sector
- Supply and Retail Market
- Licence type
- Smart Meter Communication Licence
We are reviewing the regulatory framework for the Data Communications Company (DCC) to put in place new arrangements following the expiry of the Smart Meter Communication Licence in 2027. This is a decision 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.
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. Alongside that decision, we published a statutory consultation on licence modifications to support the implementation of our policy conclusions. That consultation closed on 07 June 2025.
Our decision
This document summarises the responses to our May 2025 statutory consultation and outlines our decisions on the proposals we sought views on. We have decided to modify the Licence to:
- give effect to our conclusions on the implementation of the ex-ante process for determination of DCC’s Allowed Revenue under the Successor Licence
- amend the dates in respect of certain reporting requirements, including the Price Control submission, in the Licence to account for the Transfer Date
- amend the Baseline Margin Adjustment and External Contract gain Share mechanisms
- make a small number of housekeeping changes