Transition to smart meters

Smart meters are the next generation of gas and electricity meters and they offer a range of intelligent functions. This includes telling you how much energy you are using through a display in your home. They can also communicate directly with your energy supplier which means that no one will need to come and read your meter.

Smart meters offer a range of benefits for consumers. They:

  • give you near real time information on your energy use – expressed in pounds and pence
  • allow you to better manage your energy use (and can thereby help you save money and reduce emissions)
  • will mean consumers get accurate bills - you will only be billed for the energy you actually use

Smart meter roll-out

Rolling out 53 million gas and electricity meters to all homes and small businesses in Great Britain by the end of 2020 requires careful planning and management. Most households will have smart meters installed by their energy company between 2015 and 2020. To deliver this the government established a central change programme and asked us to manage the first phase, which was completed in March 2011.

Since April 2011, the Department for Energy and Climate Change (DECC) has been directly responsible for managing the implementation of the smart meter programme. We have been providing DECC with independent regulatory advice and expertise. We have also taken on additional regulatory functions to support smart metering.  We will continue to take on new functions, including regulation of the new Data and Communications Company (DCC).

Data and Communications Company (DCC)

The DCC is responsible for linking smart meters in homes and small businesses with the systems of energy suppliers, network operators and energy service companies.  DCC will develop and deliver the data and communications service through external providers.

DECC granted the DCC licence to Smart DCC Ltd, a subsidiary of Capita plc with effect from 23 September 2013. For further information please refer to GOV.UK website.

Smart Energy Code (SEC)

When DECC granted the DCC licence, stage 1 of the Smart Energy Code (SEC) also came into force. The SEC is a new industry code and sets out the terms for the provision of the DCC’s services and specifies other provisions to govern the end-to-end management of smart metering. Like other industry codes, we are responsible for approving any modifications to ensure consumers’ interests remain protected.
Some customers have had smart meters installed before the completion of the government’s regulatory framework for the smart meter roll-out. We have put in place measures to protect consumers who receive smart meters early. These include measures to:

  • support effective switching for domestic consumers that have smart meters installed
  • strengthen existing protections for domestic consumers, especially vulnerable consumers, in relation to disconnection and the use of meters operating in prepayment mode

The latest version of the Smart Metering Installation Code of Practice (SMICoP) as well as other useful information (such as changes that have been made since it was first approved) can be found at the SMICoP website. This Code of Practice is an important consumer protection measure during the rollout of smart meters, setting out rules and standards of conduct for suppliers installing smart meters.

Smarter Markets Programme

Smart meters can enable reform to existing market arrangements, such as change of supplier processes, which can in turn make the market work better for consumers. Our Smarter Markets Programme aims to proactively identify, and see implemented, changes to these arrangements to enable the development of smarter markets.

Publications and updates

  • Published: 16th Nov 2015
  • Closing: 15th Dec 2015
  • Consultations & responses
  • 5 Associated documents
This document sets out our final policy proposal to repeal suppliers’ two-yearly meter inspection licence conditions, and consults on licence modifications to enact this policy.

  • Published: 25th Sep 2015
  • Open letters & correspondence
  • 1 Associated documents
Smart meter in-home display (IHD) licence conditions: Our response to DECC's consultation on proposed modifications to the IHD licence conditions.

  • Published: 1st Sep 2015
  • Consultations & responses
  • 1 Associated documents
This publication sets out Ofgem’s response to DECC's July 2015 consultation on the Smart Energy Code.

  • Published: 20th Aug 2015
  • Decisions
  • 2 Associated documents
This letter sets out the Authority’s decision to approve the form of the Charging Statement for Service Charges prepared by Smart DCC Limited and its reasons for that decision.

  • Published: 11th Aug 2015
  • Open letters & correspondence
  • 1 Associated documents
This open letter sets out key licence conditions that will apply to any suppliers seeking to recover additional costs from the installation of domestic smart meters.

  • Published: 28th Jul 2015
  • Closed: 22nd Sep 2015
  • Consultations & responses
  • 2 Associated documents
Consultation on new obligations for DCC to support the development of a Central Registration Service, its funding and consequential licence changes. We also review arrangements in DCC’s licence that allow it to make a prudent estimate of allowed revenue...

  • Published: 28th Jul 2015
  • Guidance
  • 1 Associated documents
Guidance on the cost assessment process for the DCC price control. We describe our approach and the information we expect to be provided with to enable us to determine whether costs are economic and efficient. We explain how we determine whether to...

  • Published: 23rd Jul 2015
  • Closed: 18th Sep 2015
  • Consultations & responses
  • 25 Associated documents
Gas and electricity suppliers have a licence obligation to inspect their customers’ meters at least every two years, unless we consent to other arrangements. We have reviewed this licence obligation’s ongoing contribution to protecting consumer interests.

  • Published: 19th Jun 2015
  • Open letters & correspondence
  • 1 Associated documents
This letter contains Ofgem's response to DECC's consultation on non-domestic smart metering.

  • Published: 29th May 2015
  • Decisions
  • 4 Associated documents
Regulatory instructions and guidance (RIGs) are provided to Smart DCC to enable them to complete the reporting templates that they are required to submit under Licence Condition 32 of the Smart Communication Licence.