Evaluation Criteria Framework for the Smart Meter Communication Licence tender

Guidance
Publication date
Industry sector
Supply and Retail Market
Licence type
Smart Meter Communication Licence

Ofgem is reviewing the regulatory arrangements for the Data Communications Company (DCC) ahead of the expiry of its Licence due in September 2027 (“DCC review”).  As part of this process, Ofgem must also identify and select a successor licensee to hold the new Smart Meter Communication Licence (SMCL).

Evaluation criteria framework 

Following an Expression of Interest in March 2025, Ofgem has decided to conduct a competitive selection process to identify the Successor Licensee for the SMCL. The process will be conducted in alignment with the Electricity and Gas (Competitive Tenders for Smart Meter Communication Licences) Regulations 2012 (‘the 2012 Regulations’).

This means the process will commence with a qualification stage that is open to any applicant. Applicants who demonstrate eligibility, capability and capacity to deliver the obligations of the new Smart Meter Communication Licence will be invited to a closed proposal stage.

The attached document ‘SMCL tender document – evaluation criteria assessment framework’ provides guidance about the selection process, and the evaluation criteria against which applicants will be assessed at the relevant stages. Applicants will be assessed on a range of criteria including technical capability, financial standing, delivery approach and alignment with regulatory objectives.

Next steps 

Ofgem intends to launch the competitive selection process in the week commencing 25 August 2025. In accordance with the 2012 Regulations, we will publish a notice to this effect.  

Closer to the date, we will provide greater detail on this webpage outlining the process for prospective applicants to register on Ofgem e-Tendering portal. This portal will be used to conduct the competitive selection process.