Smart Meter Communication Licensee: decision

We have now selected a new Licensee by running an open competitive tender process. We are pleased to announce that we have selected a Successor Licensee to hold the new Smart Meter Communication Licence (SMCL). The Successful Applicant is DCC2 Ltd, a wholly owned subsidiary of SECCo ltd.

DCC2 will be the not-for profit purpose driven organisation that will enact the changes that we have implemented during the DCC review program.

The main changes that DCC2 will oversee are:

• transition to a majority independent governance
• transition to an ex-ante cost control process
• production of Business strategy and technology roadmap

We plan to conclude and publish the final version of the SMCL and bring the licence into effect in March 2026.

Background

Following an Expression of Interest in March 2025, we decided to run a competitive selection process to identify the Successor Licensee for the SMCL. The process was conducted in line with the Tender Regulations (set out in SI 2012/2414). The process began with a Qualification stage that was open to any applicant. Applicants who demonstrated eligibility, capability and capacity to deliver the obligations of the new SMCL were invited to a closed Proposal stage. Below is a timeline of the process.

Timeline

Expression of interest and questionnaire, March 2025

Evaluation criteria published, July 2025

Licence application competition opens, 8 September 2025

Qualification stage, 8 September 2025 to 6 October 2025

Proposal stage, 5 November 2025 to 12 January 2026

Successor licensee selected, 9 February 2026 

Joint Handover Steering Group Chair

To support the smooth transition from DCC1 to DCC2, a Joint Handover Steering Group (JHSG) is being established. This is an independent advisory group with representation across key stakeholders.

Led by an independent Chair, the JHSG will act as the conscience of the Licence Renewal programme, driving and sponsoring effective decision-making. Its fundamental purpose is to provide overall direction to the Business Handover Plan and ensure there are no adverse impacts on DCC’s customers throughout the transition. It will monitor progress against the plan and will have oversight of risk, delivery and assurance activities, working with other governance bodies where appropriate.

Following a competitive recruitment process, Jayesh Parmar has been appointed as the Independent Chair. He brings extensive global experience across the energy sector, having led major strategic, infrastructure and regulatory programmes for organisations including EDF, British Gas, National Grid, Ofgem, Elexon and DESNZ.